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Administration 55 West Tompkins Street Galesburg, IL 61401 CITY OF GALESBURG Illinois, USA July 19 City Council Agenda __________________________________________________________________________________________________________________________________________________________________________________________________________________________ Page 1 of 2 City Council Meeting Agenda City of Galesburg, Illinois City Council Chambers July 19, 2021 Members of the public who would prefer to view Galesburg City Council meetings remotely, can view the council meetings on Comcast channel 7 or stream the meeting live on the City’s website. 5:30 p.m. Roll Call Pledge of Allegiance Presentation FY 2020 Audit Presentation by Baker Tilly Invocation Approve Minutes from July 6, 2021 Consent Agenda #2021-14 21-4066 Approve Release of utility easement for 1691 Outrigger Road 21-5013 Receive FY 2020 Comprehensive Annual Financial Report 21-8013 Bills and Advance Checks Approval and warrants drawn in payment of same Passage of Ordinances and Resolutions 21-1014 Ordinance Establishing hours for City cemeteries (Final Reading) 21-2020 Resolution TIF Transfer from TIF 2 to TIF 4 for a façade grant agreement with Bondi Building Corp. 21-2021 Resolution TIF Transfer from TIF 1 to TIF 4 for Ameren light pole replacement Bids, Petitions and Communications Public Comment City Manager’s Report A. July TAC Report Miscellaneous Business (Agreements, Approvals, Etc.) 21-4067 Approve Facade Grant Agreement with Bondi Building Corp, 311 E. Main Street 21-4068 Approve Ameren Main Street lighting invoice for light pole relocations 21-4069 Approve External agency funding requests __________________________________________________________________________________________________________________________________________________________________________________________________________________________ Page 2 of 2 Town Business 21-9016 Bills Closing Comments Adjournment Vision Statement “The City of Galesburg will be a dynamic community featuring a full range of public amenities to serve a diverse citizenry. The City Council will play a pro-active role in providing leadership to its citizens, neighborhoods, and other public bodies and enact policies which ensure the existence of a broad based economy.” CITY OF GALESBURG Administration Operating Under Council – Manager Government Since 1957 _________________________________________________________________________________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________________________________________________________________________________________ Page 1 of 2 CITY COUNCIL MEETING City Manager’s Report July 19, 2021 CONSENT AGENDA #2021-014 Item 21-4066 Release of Easement for 1691 Outrigger Road Staff recommends approval of the release of the utility easement for 1691 Outrigger Road. The property owner is proposing to construct a new detached garage and it would be located over an existing utility easement. Bruner, Cooper and Zuck prepared the attached Plat of Vacation and utility companies have been contacted requesting their releases. Ameren has already approved and recorded their release. The City does not currently have any facilities located in the utility easement. Item 21-5013 FY 2020 Comprehensive Annual Financial Report The FY 2020 Comprehensive Annual Financial Report is provided to be received and placed on file with the City Clerk’s office. Item 21-8013 Bills Bills and Advanced Checks are submitted for approval; please direct questions to Gloria Osborn, Director of Finance and Information Systems. ORDINANCES AND RESOLUTIONS Item 21-1014 Establishing Hours for City Cemeteries (Final Reading) Staff recommends approval of an ordinance, which establishes hours for Linwood Cemetery, East Linwood Cemetery, and the Scattering Gardens. The ordinance prohibits individuals from frequenting the cemeteries between sunset of each evening and sunrise the following morning, except by prior consent from authorized city staff. Item 21-2020 TIF Transfer from TIF II to TIF IV Staff recommends approval of a resolution authorizing the transfer of $32,467.50 from the Tax Increment Financing (TIF) District II fund to the TIF IV fund. These funds will be utilized to provide redeveloper assistance to Mr. Bondi (Bondi Building Corp.) for eligible renovation costs on a building at 311 East Main Street, as outlined in item 21-4067 on this agenda. Item 21-2021 TIF Transfer from TIF 1 to TIF 4 Staff recommends approval of a resolution authorizing the transfer of $52,764.89 from the Tax Increment Financing (TIF) District I fund to the TIF IV fund. These funds will be utilized for the cost for Ameren to relocate existing poles and lighting to make room for ornamental street lighting on both sides of Main Street between Cedar Street and Academy Street, as outlined in item 21- 4068 on this agenda. BIDS, PETITIONS AND COMMUNICATIONS CITY OF GALESBURG Administration Operating Under Council – Manager Government Since 1957 _________________________________________________________________________________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________________________________________________________________________________________ Page 2 of 2 CITY MANAGER’S REPORT A. July TAC Report MISCELLANEOUS BUSINESS (Agreements, Approvals, Etc.) Item 21-4067 Façade Grant Agreement with Bondi Building Corp. The Façade Advisory Committee recommends approval of facade assistance for 311 East Main Street in an amount not to exceed $64,935, or 50% of the actual final project costs, whichever is less. An application for façade assistance for building improvements was submitted by Bondi Building Corp. If approved, the owner anticipates beginning work in August with an estimated completion by October 1, 2021. This project is located inside of the Special Service Area as well, so any incentive provided will be 50% from the City (through the Tax Increment Financing District IV fund) and 50% from the Galesburg Downtown Council. Item 21-4068 Ameren Main Street Lighting Invoice Staff recommends approval of payment of invoices totaling $52,764.89 from Ameren for relocating their poles and removing the existing lighting in order to make room for proposed ornamental street lighting on both sides of Main Street, between Cedar Street and Academy Street, in front of the new library location. In April 2021, City Council approved hiring IMEG consultants to prepare bid documents for installing ornamental lighting in this area. Item 21-4069 External Agency Funding Request Staff recommends funding external agency requests as outline in the attached funding recommendation chart, for a total expenditure of $84,111. During this application period, 19 organizations requested $143,961 of funding. The organizations and projects for which external agency applications are received vary greatly, and include community events, as well as services for members of the community. As external agency requests for funding have trended upward each year and budgetary constraints limit the City’s ability to continually fund at higher levels, not all requests are recommended for funding, or funded at the levels requested. TOWN BUSINESS Item 21-9016 Town Bills Respectfully submitted, Todd Thompson City Manager Galesburg City Council Regular Meeting City Council Chambers 55 West Tompkins Street, Galesburg, Illinois July 6, 2021 5:30 p.m. Called to order by Mayor Peter Schwartzman at 5:30 p.m. Roll Call #1: Present: Mayor Peter Schwartzman, Council Members Bradley Hix, Wayne Dennis, Dwight White, Jaclyn Smith-Esters, Sarah Davis, and Larry Cox, 7. Absent: Council Member Lindsay Hillery, 1. Also Present: City Manager Todd Thompson, City Attorney Bradley Nolden, and City Clerk Kelli Bennewitz. Mayor Schwartzman declared a quorum present. The Pledge of Allegiance was recited. Pastor Tony Franklin, Full Gospel Church, gave the invocation. Council Member Dennis moved, seconded by Council Member Smith-Esters, to approve the minutes of the City Council’s regular meeting from June 21, 2021. Roll Call #2: Ayes: Council Members Hix, Dennis, White, Smith-Esters, Davis, and Cox, 6. Nays: None Absent: Council Member Hillery, 1. Chairman declared motion carried. CONSENT AGENDA #2021-13 All matters listed under the Consent Agenda are considered routine by the City Council and will be enacted by one motion. 21-2018 Approve Resolution 21-16 approving a revised and restated Flexible Spending Arrangement for current City employees as of January 1, 2021. 21-2019 Approve Resolution 21-17 authorizing the acquisition of permanent easements for the South Street Storm Sewer Replacement Project. 21-8012 Approve bills in the amount of $805,646.12 and advance checks in the amount of $488,002.62. Council Member Smith-Esters moved, seconded by Council Member White, to approve Consent Agenda 2021-13. Roll Call #3: Ayes: Council Members Hix, Dennis, White, Smith-Esters, Davis, and Cox, 6. Nays: None July 6, 2021 Page 1 of 7 Absent: Council Member Hillery, 1. Chairman declared motion carried by omnibus vote. PASSAGE OF ORDINANCES AND RESOLUTIONS 21-1011 Council Member White moved, seconded by Council Member Davis, to approve Ordinance 21-3640 on final reading amending Traffic Appendix X of Chapter 77 of the Galesburg Municipal Code to restrict parking on the north side of Knox Street near Whitesboro Street during school hours only. Roll Call #4: Ayes: Council Members Hix, Dennis, White, Smith-Esters, Davis, and Cox, 6. Nays: None Absent: Council Member Hillery, 1. Chairman declared motion carried. 21-1012 Council Member Dennis moved, seconded by Council Member Smith-Esters, to approve Ordinance 21-3641 on final reading amending Traffic Appendix V of Chapter 77 of the Galesburg Municipal Code to restrict parking on Pine Street across from 421 Pine Street. Roll Call #5: Ayes: Council Members Hix, Dennis, White, Smith-Esters, Davis, and Cox, 6. Nays: None Absent: Council Member Hillery, 1. Chairman declared motion carried. 21-1013 Council Member White moved, seconded by Council Member Smith-Esters, to approve Ordinance 21-3642 on final reading amending Traffic Appendix D of Chapter 76 of the Galesburg Municipal Code designating the intersection of Kellogg Street and Tompkins Street as a four-way stop intersection. Discussion was held on the current traffic counts vs. the 2013 and Director Carl stated they have doubled since that time. It was also noted that the visibility is very difficult from the north and that it is anticipated that traffic will increase based on the new business at the intersection. Roll Call #6: Ayes: Council Members Hix, Dennis, White, Smith-Esters, Davis, and Cox, 6. Nays: None Absent: Council Member Hillery, 1. Chairman declared motion carried. 21-1014 Ordinance on first reading amending Chapter 92 of the Galesburg Municipal Code to establish hours for the cemeteries and scattering garden. The ordinance will be amended to include after July 6, 2021 Page 2 of 7 hour consent can be given by a City Manager designee as well as the Parks & Recreation Director. BIDS, PETITIONS, AND COMMUNICATIONS PUBLIC COMMENT Pam Davidson addressed the Council as a resident of Ward Three and encouraged Council Member Hillery to resign her seat on the City Council. She added that as an elected official she should be honorable and is not representing the Ward. She will be bringing a petition for her resignation to the next meeting if she does not step down. Carlos Duncan and John Peterson, representing the Galesburg Youth Athletic Club, stated that they are bringing a new free four-week program to the community called “Gloves Not Guns.” The program will focus on boxing and fitness and will feature different community speakers. They noted that they are working with Steve Gugliotta, Community Development Acting Director, for assistance on transportation. It was also suggested by the Council that GYAC possibly advertise the need for scholarships in order to help with the cost. Duncan also made the Council aware that the Regional Office of Education in partnership with the NAACP and United Way is bringing the Mobile Museum of Tolerance to Galesburg, July 19-21. The museum will offer three workshops: Civil Rights, The Anne Frank Story, and The Power of Ordinary People. Ranee Collura addressed the Council regarding illegal fireworks that have been happening at all hours. She stressed that in the future the problem needs to be addressed and that the City needs to have stricter rules. Kevin Wallace addressed the Council and stated that he is part of the South Side Task Force. He thanked Aaron Gavin for the no parking signs near him, which is behind the Grand Tap tavern. He would like the City to consider a four-way stop at Baird Street and Michigan Avenue or an adjustment of the speed limit. Reverend Hailey addressed the Council and stated that he is proud of the GYAC vision and would challenge everyone to get involved and help sponsor the program. He added he has lived here three years and is sad to see our community leaders in the newspaper for the wrong reasons. He urged the Council to address the situation. CITY MANAGER’S REPORT City Manager Thompson thanked Mr. Wallace for his comments and invited him to talk to Director Wayne Carl after the meeting about the traffic situation on Baird Avenue. He also noted that the City is concerned about the fireworks and has met with Chief Idle about the issue. Extra officers were used and over 200 calls were received about illegal fireworks. He July 6, 2021 Page 3 of 7 added that it will be a challenge to respond to all other calls (over 900) but that they are working to improve the situation. MISCELLANEOUS BUSINESS (Agreements, Approvals, Etc.) 21-4064 Council Member Cox moved, seconded by Council Member Smith-Esters, to approve change orders 1 to 6 for the Phase IV replacement of lead water service lines in the amount of $110,274.50. Roll Call #7: Ayes: Council Members Hix, Dennis, White, Smith-Esters, Davis, and Cox, 6. Nays: None Absent: Council Member Hillery, 1. Chairman declared motion carried. 21-4065 Council Member Dennis moved, seconded by Council Member Hix, to authorize the Galesburg Police Department to apply for an Illinois Law Enforcement Alarm System (ILEAS) Bearcat armored rescue vehicle that is available from the State of Illinois. If awarded, there is no cost to the City except maintenance. Council Member White stated that he is concerned about the appearance of the vehicle and that the perception is that this is a swat vehicle. Chief Idle confirmed that there are no weapons on the rescue vehicle and will be used to keep citizens and officers safe and gives the Police Department tactical options if needed. Roll Call #8: Ayes: Council Members Hix, Dennis, Smith-Esters, Davis, and Cox, 5. Nays: None Absent: Council Member Hillery, 1. Abstain: Council Member White, 1. Chairman declared motion carried. Council Member Smith-Esters moved, seconded by Council Member Cox, that the City Council sit as the Town Board. The motion carried by voice vote. TOWN BUSINESS 21-9014 Trustee Cox moved, seconded by Trustee Smith-Esters, to approve Town bills and warrants be drawn in payment of same. Fund Title Amount Town Fund $1,835.28 General Assistance Fund $2,414.22 July 6, 2021 Page 4 of 7 IMRF Fund $4,815.03 Social Security/Medicare Fund $2,481.03 Liability Fund Audit Fund Total $11,545.56 Roll Call #9: Ayes: Trustees Hix, Dennis, White, Smith-Esters, Davis, and Cox, 6. Nays: None Absent: Trustee Hillery, 1. Chairman declared motion carried. Trustee White moved, seconded by Trustee Cox, to resume sitting as the City Council. The motion carried by voice vote. CLOSING COMMENTS Council Member White thanked the City for supporting GYAC and for the great program being presented by Carlos Duncan. He added that Mr. Duncan is a role model and mentor to him and is thankful for any assistance that the City can provide. Council Member Smith-Esters stated that she read an Associated Press article entitled Galesburg, an American crossroad, tunes out feuding Congress. She stated that it was an enlightening read and those interviewed seemed to think that Galesburg lives in a vacuum and is not bothered by things such as racism. She believes that we are not a static community and that the sooner all realize this, the sooner we will become a better community. Failures need to be used as learning moments -- without failures we cannot grow or celebrate our successes. She asked all community members to have a mantra of “we can do better,” and to join in the process of making the City of Galesburg a city of possibilities and dreams. She asked everyone to be “present at the table” and to contact your Council Member. She quoted Margaret Mead, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has.” Council Member Sarah Davis thanked everyone for their comments tonight and that several issues are being addressed. She sincerely hopes that as the community leadership the Council can find ways to move forward and resolve some of the issues discussed tonight. She encouraged everyone to follow the Public Library’s Facebook page for interesting updates and be part of the development adventure. Council Member Hix thanked Carlos Duncan and John Peterson for their work with GYAC. He also stated that he is looking forward to the John Deere Classic this week. Mayor Schwartzman announced that his Mayor’s Appreciation Award is being given to Henry Wooten, a veteran of the 82nd Airborne Division (1972-1976) and an essential worker at Knox College for 21 years. July 6, 2021 Page 5 of 7 The Mayor stated that Railroad Days was a success this year and thanked Dennis Clark for his work on the event. He also congratulated Bunker Links and Golf Pro Bryan Luedtke on being named one of the 30 best golf courses, and one of six in the Midwest, listed in GOLF Magazine. He also announced that Galesburg Youth Baseball League will be hosting the 9 and 11-year-old Illinois Cal Ripken Baseball Tournament at Voyles Field from July 9 through July 11. Games on Friday are at 1 pm and 3 pm. Games on Saturday are at 11 am and 1 pm. The championship games will be played Sunday at 11 am and 1 pm. He added that as part of the tournament events, GYBL will also be hosting a home run derby on Friday, July 9. Mayor Schwartzman encouraged people to get vaccinated in order to avoid the delta strain of virus that is creeping into our community and causing more pain and anguish for families. Lastly, the Mayor thanked all the citizens who contacted the City about the challenges with Waste Management. He and the City Manager have met with the regional Waste Management director and believes there has been a marketed improvement in service. He stated that it is a very challenging situation and that they are having issues with finding employees. Anyone interested in a job with the company can contact the City for information. Council Member Cox moved, seconded by Council Member White, to adjourn into Executive Session at 6:25 p.m. for the purpose of discussing litigation and approval of the minutes from the May 17, 2021, executive session meeting (5 ILCS 120/2 (c) (11) and (21). Roll Call #10: Ayes: Council Members Hix, Dennis, Andersen, Schwartzman, Allen, and Cox, 6. Nays: None Absent: Council Member Hillery, 1. Chairman declared motion carried. During the Executive Session, Council Member Smith-Estersmoved, seconded by Council Member White, to adjourn the Executive Session at 7:19 p.m. Roll Call #11: Ayes: Council Members Hix, Dennis, Andersen, Schwartzman, Allen, and Cox, 6. Nays: None Absent: Council Member Hillery, 1. Chairman declared motion carried. There being no further business, Council Member Smith-Esters moved, seconded by Council Member Davis, to adjourn the regular meeting at 7:19 p.m. Roll Call #12: Ayes: Council Members Hix, Dennis, Andersen, Schwartzman, Allen, and Cox, 6. Nays: None Absent: Council Member Hillery, 1. Chairman declared motion carried. Peter D. Schwartzman, Mayor July 6, 2021 Page 6 of 7 Kelli R. Bennewitz, City Clerk July 6, 2021 Page 7 of 7 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by Gug Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 19, 2021 AGENDA ITEM: Release of Utility Easement for 1691 Outrigger Rd. SUMMARY RECOMMENDATION: The City Manager, Director of Public Works and Interim Director of Community Development recommend approval of the Release of the Utility Easement for 1691 Outrigger Rd. BACKGROUND: The owner of 1691 Outrigger Rd is proposing to construct a new detached garage and it would be located over an existing utility easement. Bruner, Cooper and Zuck prepared the attached Plat of Vacation and utility companies have been contacted requesting their releases. Ameren has already approved and recorded their release. The City does not currently have any facilities located in the utility easement. BUDGET IMPACT: None. SUPPORTING DOCUMENTS: 1.Aerial – General location 2.Partial Release of Utility Easement 3.Plat of Vacation 21-4066 KingsCanyonBlvdKingsCanyonBlvdEdwardsAveEdwardsAveOutriggerRd BandyAveBandyAveOutriggerRd BANDY AVEEDWARDS AVEOUTRIGGER RDKINGS CANYON BLVD9909306002 543 KINGS CANYON BLVD 9909306003 523 KINGS CANYON BLVD 9909306004 503 KINGS CANYON BLVD 9909306005 483 KINGS CANYON BLVD 9909306006 469 KINGS CANYON BLVD 9909306007 453 KINGS CANYON BLVD 9909306008 435 KINGS CANYON BLVD 9909306009 419 KINGS CANYON BLVD 9909306017 584 EDWARDS AVE 9909306018 560 EDWARDS AVE 9909306019 522 EDWARDS AVE 9909306020 480 EDWARDS AVE 9909306021 462 EDWARDS AVE 9909306022 452 EDWARDS AVE 9909306023 446 EDWARDS AVE 9909326001 1656 W LOSEY ST 9909326002 533 EDWARDS AVE 9909326004 530 BANDY AVE 9909326005 516 BANDY AVE 9909326008 1643 OUTRIGGER RD 9909326009 514 BANDY AVE 9909326010 1691 OUTRIGGER RD 9909327002 1666 OUTRIGGER RD 9909327003 1644 OUTRIGGER RD 9909327004 494 BANDY AVE 9909327006 1663 HULA DR 9909327007 1651 HULA DR 9909327008 466 BANDY AVE 9909327009 453 EDWARDS AVE 9909327010 1695 HULA DR 9909329001 1580 W LOSEY ST 9909329002 1566 W LOSEY ST 9909329007 521 BANDY AVE 9909329008 515 BANDY AVE 9909329009 505 BANDY AVE 9909329010 495 BANDY AVE 9909329011 471 BANDY AVE 9909329012 461 BANDY AVE 9909329021542 COLUMBUS AVE9909329037 543 BANDY AVE 9909329038 529 BANDY AVE Sources: Esri, HERE, Garmin, FAO, NOAA, USGS,© OpenStreetMap contributors, and the GIS User Community July 07, 2021 / Cadastral City of Galesburg Parcels selection 60 0 60 120 18030 Feet 1691 Outrigger Rd Community Development Department CITY OF GALESBURG Operating Under Council-Manager Government Since 1957 Page 1 of 2 PARTIAL PLAT RELEASE OF EASEMENT CITY OF GALESBURG, ILLINOIS TO TRENT L. NELSON AND SHAWN M. NELSON F/K/A SHAWN M. CARLSON Tract 1: Lots 34 and 35, Aloha Acres – Extension One ,a part of Lots 3, 7 and 9 of a resubdivision of the north part of the east one-quarter of Section 9, Township 11 North, Range 1 East of the Fourth Principal Meridian, in the City of Galesburg, Knox County, Illinois. Tract 2: Lot 12 in Block Two, David’s Addition, City of Galesburg, Being a Subdivision of Lot 2 of a Subdivision of the East Half of the Southwest Quarter of Section 9, Township 11 North, Range 1 East of the Fourth Principal Meridian, Knox County, Illinois. COMMONLY KNOWN AS: 1691 Outrigger Rd, Galesburg, IL 61401 PROPERTY IDENTIFICATION NUMBER: 99-09-326-010 Submitted by: Return to: Kelli Bennewitz Kelli Bennewitz City Clerk City Clerk City of Galesburg City of Galesburg Page 2 of 2 Partial Plat Release of Easement This instrument made this __________ day of _______________, 2021. WHEREAS certain easements for utility purposes were dedicated on Part of Lot 34 & 35 of Aloha Acres – Extension One Subdivision pursuant to plats recorded as Document No 645521, in the Office of the Recorder of Deeds, for the County of Knox, State of Illinois. WHEREAS it is the intention of the City of Galesburg (hereinafter referred to as “City”), an Illinois Municipal Corporation, to release only that PART of its easement encumbering the Easterly Portion of said Lot 34 and the Northerly and Westerly portion of said Lot 35, more specifically described and as shown on Exhibit “A” attached hereto and made a part hereof. NOW THEREFORE, City, in consideration of ten dollars ($10.00), the receipt of which is hereby acknowledged, does hereby release and remise only their interest in the aforesaid Easement as described above and in the attached drawing. It is expressly understood and agreed that this Partial Release of Easement is executed only for the purpose of releasing the City’s interest in said easement described above and that the interests of other parties, if any, mentioned in the aforesaid Easement are hereby reserved and remain in full force and effect. This release is not intended to and shall not in any way affect other easements the City owns or has a right to sue in said Aloha Acres – Extension One Subdivision except as to the premises hereinabove specifically described. IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly executed at Galesburg, Illinois this _________day of ______________, 2021. CITY OF GALESBURG By: _________________________ Peter Schwartzman Title: Mayor STATE OF ILLINOIS ) ) SS. COUNTY OF KNOX ) I, the undersigned, a Notary Public in and for said County and State, do hereby certify that Peter Schwartzman, personally known to me to be the Mayor of the City of Galesburg appeared before me this day in person and acknowledged that he/she, being thereunto duly authorized, executed the foregoing instrument in such capacity on behalf of the City of Galesburg for the uses and purposes set forth. SUBSCRIBED AND SWORN TO before me this _____ day of ________________, 20__. _ _ Notary Public Exhibit A Comprehensive Annual Financial Report Year Ended December 31, 2020 CITY OF GALESBURG Illinois, USA Comprehensive Annual Financial Report of the City of Galesburg, Illinois For the Fiscal Year Ended December 31, 2020 Prepared by: Finance Department City of Galesburg,Illinois Table of Contents December 31,2020 Page Introductory Section Transmittal Letter i Certificate of Achievement for Excellence in Financial Reporting xiii Organization Chart xiv Elected and Appointed City Officials xv Financial Section Independent Auditors’ Report 1 Required Supplementary Information Management’s Discussion and Analysis (Unaudited)4 Basic Financial Statements Government-wide Financial Statements: Statement of Net Position 15 Statement of Activities 17 Fund Financial Statements Balance Sheet -Governmental Funds 18 Reconciliation of Governmental Funds Balance Sheet to Statement of Net Position 19 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 21 Statement of Net Position -Proprietar y Funds 22 Statement of Revenues, Expenses, and Changes in Fund Net Position -Proprietary Funds 24 Statement of Cash Flows -Propriety Funds 25 Statement of Fiduciary Net Position -Fiduciary Funds 27 Statement of Changes in Fiduciary Net Position -Fiduciary Funds 28 Notes to Basic Financial Statements 29 City of Galesburg,Illinois Table of Contents December 31,2020 Page Required Supplementary Information Historical Pension and Other Postemployment Benefit Information: Illinois Municipal Retirement Fund: Schedule of Changes in the City’s Net Pension Liability and Related Ratios 88 Schedule of Employer Contributions 90 Illinois Municipal Retirement Fund -Town of the City of Galesburg: Schedule of Changes in the City’s Net Pension Liability and Related Ratios 91 Schedule of Employer Contributions 92 Police Pension Plan: Schedule of Changes in the City’s Net Pension Liability and Related Ratios 93 Schedule of Employer Contributions 94 Schedule of Investment Returns 95 Firefighters’ Pension Plan: Schedule of Changes in the City’s Net Pension Liability and Related Ratios 96 Schedule of Employer Contributions 97 Schedule of Investment Returns 98 Other Postemployment Benefit Plan: Schedule of Changes in the City’s Net OPEB Liability and Related Ratios 99 Schedule of Employer Contributions 100 Schedule of Investment Returns 101 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual 102 Special Revenue Funds Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual - Economic Development Fund -Major Special Revenue Fund 103 Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual - Parks and Recreation Fund -Major Special Revenue Fund 104 Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual – Public Transportation Fund -Major Special Revenue Fund 105 Notes to Required Supplementary Information 106 Supplementary Information Nonmajor Governmental Funds: Combining Balance Sheet 107 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 109 City of Galesburg,Illinois Table of Contents December 31,2020 Page Special Revenue Funds Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual: City Gas Tax Fund 111 Motor Fuel Tax Fund 112 Federal Special Enforcement Fund 113 State Special Enforcement Fund 114 Storm Water Utility Fund 115 Foreign Fire Fund 116 Grants Fund 117 Airport Fund 118 Property Redevelopment Fund 119 Public Transportation Projects Fund 120 911 Communication Fund 121 Town of the City of Galesburg Fund 122 Debt Service Funds Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual: 2011C Business Park Fund 123 2013A GO Bonds Business District Fund 124 2016 GO Bond Debt Service Fund 125 Capital Projects Funds Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual: 2016 GO Capital Improvement Fund 126 2013A Business District Fund 127 Utility T ax Capital Projects Fund 128 TIF 3 Regenc y Capital Project Fund 129 Building Repair and Maintenance Fund 130 TIF Downtown Fund 131 TIF East Main Fund 132 Computer Replacement Fund 133 Vehicle Replacement Fund 134 Players Fields Fund 135 Capital Planning Fund 136 TIF IV Fund 137 TIF V Fund 138 Permanent Funds Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual: Linwood Cemetery Fund 139 East Linwood Cemetery Fund 140 City of Galesburg,Illinois Table of Contents December 31,2020 Page Component Unit Statement of Net Position and Governmental Funds Combining Balance Sheet 141 Statement of Activities and Governmental Fund Combining Statement of Revenues, Expenditures and Changes in Fund Balances 142 Statistical Section (Unaudited) Contents 143 Comments Relative to Statistical Section 144 Financial Trends Net Position by Component -Last Ten Fiscal Years 145 Changes in Net Position -Last Ten Fiscal Years 146 Fund Balances, Governmental Funds -Last Ten Fiscal Years 148 Changes in Fund Balances, Governmental Funds -Last Ten Fiscal Years 149 Revenue Capacity Direct and Overlapping Property Tax Rates -Last Ten Tax Years 150 Assessed Value and Actual Value of Taxable Property -Last Ten Tax Years 151 Principal Property Taxpayers -Current Year and Ten Years Ago 152 Property Tax -Levies and Collections -Last Ten Tax Years 153 Taxable Sales by Category -Last Ten Tax Years 154 Direct and Overlapping Sales Tax Rates -Last Ten Tax Years 155 Debt Capacity Ratio of Net General Bonded Debt Outstanding by Type -Last Ten Fiscal Years 156 Direct and Overlapping Governmental Activities Debt 157 Demographic and Economic Information Demographic and Economic Statistics -Last Ten Fiscal Years 158 Principal Employers -Current Year and Ten Years Ago 159 Full-time Equivalent City Government Emplo yees by Functions/Programs - Last Ten Fiscal Years 160 Operating Information Operating Indicators by Function -Last Ten Fiscal Years 161 Capital Asset Statistics by Function -Last Ten Fiscal Years 162 City of Galesburg Operating Under Council – Manager Government Since 1957 City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us i June 25, 2021 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Galesburg: State law requires that every general-purpose local government publish within six months of the close of each fiscal year a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended December 31, 2020. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon, a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Baker Tilly has issued an unmodified (“clean”) opinion on the City of Galesburg’s financial statements for the year ended December 31, 2020. The independent auditors’ report is located at the front of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Government The city of Galesburg, incorporated on February 14, 1857, is located on Interstate 74 in northwest Illinois. Galesburg is located approximately 50 miles east of the Mississippi River. Galesburg is central 45 miles from both Peoria and the Quad Cities on I-74, and a three-hour train ride from downtown Chicago via Amtrak. This central location allows residents to be able to access a variety of different cities with ease. It currently occupies approximately 17.75 square miles and, based on the 2010 U.S. Census Bureau estimate, serves a population of 32,195. The City of Galesburg (City) is empowered to levy a property tax on real property located within its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which it has done from time to time. The City is a home rule municipality and has operated under the Council-Manager form of government since 1957. Policy-making and legislative authority are vested in a governing council (Council) consisting of seven council members and a mayor. The Council appoints the government’s city manager, who in turn appoints the heads of the various departments. The council members are elected, for four-year terms, from defined city wards. Residents of each ward vote for their ward’s council member only. All city residents elect the mayor for a four-year term. City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us ii The City of Galesburg provides a full range of services, including police and fire protection, water service, refuse collection, recycling collection, landscape waste collection, parks, campground, municipal airport, municipal golf course, municipal indoor swimming pool, water park, recreational programs, public library, cemeteries, and the care of streets and sidewalks. The City of Galesburg also is financially accountable for a legally separated public library and the Town of the City of Galesburg, both of which are reported separately within the City of Galesburg’s financial statements. Additional information on these legally separate entities can be found in the notes to the financial statements. The Council is required to adopt a final budget before the beginning of the fiscal year to which it applies. This annual budget serves as the foundation for the City of Galesburg’s financial planning and control. The budget is prepared by fund, function (e.g., public safety) and department (e.g., police). Department heads may transfer resources within a division as they see fit. Transfer between departments, however, need special approval from the City Council. Local economy Galesburg is a strategic location for distribution operations, trans-loading, rail equipment manufacturing, assembly and repair operations, and value-added agribusiness. Due to its advantageous location, three industrial parks were created in the mid to late 1990’s. In 2003, the City Council acquired additional land, 350 acres, that is adjacent to Interstate 74 to help more companies serve the consumers in or around the Galesburg market. Central location and major transportation assets are among the greatest assets the Galesburg area has to offer. Galesburg's transportation industry has been a central component of its revitalization efforts. Burlington Northern Santa Fe (BNSF) Railway Company employs approximately 1,000 workers in the Galesburg Classification yard. BNSF operates various main lines that converge on Galesburg. Numerous trains travel through Galesburg before being re- routed to their destination. There are various industrial facilities in the city that provide multiple benefits to the local economy. Examples include United Facilities, a large food warehousing and distribution facility; Midstate Manufacturing offering metal fabrication; and Blick Art Materials, an art supply mail order and distribution facility along with having store fronts in many cities. Another manufacturing company which provides employment in the city is ILPEA which manufactures such things as plastic gaskets. In 2014, Pegasus Manufacturing located to Galesburg from California. Pegasus is a contract manufacturer of complex machined parts and assemblies for the food processing, automotive, industrial, and mold & die industries. In 2018, Jupiter Machine Tool, Inc. opened its new facility in the community. The company specializes in making computer-numerical controlled manufacturing equipment that other manufacturing companies buy and then use for their operations. Also, announced in 2018, Midstate Manufacturing purchased two existing buildings on McClure Street and Monmouth Boulevard for expansion purposes. The expansion was for the assembly of autonomous vehicle kits for off-highway trucks as well as an expansion of the company’s painting capacity. In 2019, Phoenix Investors purchased the former Maytag facility and commenced a complete renovation of the existing building. In 2020, Corteva Agriscience, an agricultural chemical and seed company, leased from Phoenix Investors approximately 300,000 square-feet of the facility. Sitka Salmon Shares, a subscription-based seller of fish, is a small business that Galesburg continues to grow due to Sitka acquiring another business located in Alaska. In 2015, the company purchased Big Blue Fisheries, a fish processing facility in Sitka, Alaska, which assists City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us iii Sitka by creating a more integrated supply chain. In 2016, Sitka Salmon Shares expanded into a larger warehouse section to increase its freezer capacity to allow member growth. The city continues to see growth in the retail sector. The community has seen the construction of a variety of retail establishments such as the Casey’s General Store which opened on Seminary Street in the summer of 2015. Also, in 2015, the Super Clean Car Wash was built on Carl Sandburg Drive west of the new Casey’s. The car wash is a 110-foot tunnel wash that both washes and dries the car and has the capacity to clean up to 100 cars per hour. Blush Salon and Spa opened on Main Street in 2015 and offers a variety of services. In 2015, Midwest Uniform Supply which offers mostly medical attire, mainly scrubs, and embroidery services moved its location up Seminary Street. Another retail store, which opened in 2015, includes a two-level antique shop, the Junk Drawer, on Cherry Street. In 2016, a renovation of an existing building was completed to house Slumberland Furniture. A newly constructed Hy-Vee gas station and convenience store was located on North Henderson Street in front of the Hy-Vee grocery store during the calendar year of 2016. Another business that started in 2016 includes Buddy’s Home Furnishings which is located on North Henderson Street. In 2017, the Yemm Chevrolet dealership, on Henderson Street, completed the construction of a second building to provide additional showroom space for its vehicles. Also, in 2017, Scott Equipment which sales power equipment and tools as well as performs equipment repair services opened its doors on North Linwood Road. In 2019, a new Verizon store opened on North Henderson Street. In 2020, Nature’s Treatment refurbished a building and opened its cannabis dispensary business. In 2017, Discovery Depot, a children’s museum, announced the expansion of exhibits to the second floor of their existing building which allows the museum to attract more visitors. The expansion was possible due to the museum’s capital campaign that raised $1.6 million. The City of Galesburg also provided TIF funding to the museum for the various projects. Seminary Square, a 140-acre regional shopping center, is anchored by Wal-Mart Supercenter and Menard’s. The shopping center also includes retail and a few restaurants such as Rue 21, Maurice’s, and Buffalo Wild Wings. In 2012, the Toyota dealership constructed a new building in the highly traffic area of Seminary Square. After the Toyota dealership made the move, the locally owned Nissan dealership relocated to the former Toyota dealership on North Henderson Street. After the move, the Nissan dealership building went through a new façade, a remodeling of the interior of the building, all of which has brighten up the appearance of the site. In 2016, Kohl’s store, Pet Supplies Plus, Aspen Dental and Shoe Carnival opened in the Seminary Square Center. In 2017, Kay Jewelers and Hibbett Sports opened their stores in Seminary Square. In 2019, Knox Family Dental opened its doors to new dental patients. In 2020, Guacamole Grill opened its restaurant in the Seminary Square shopping center. In 2018, developers announced the grand opening of the Galesburg Crossings, a new shopping center in the former Walmart building at Henderson Street and Carl Sandburg Drive. Four new stores located in the building and include PetSmart, Harbor Freight Tools and Five Below. The fourth store, Marshalls, opened in 2019. In 2020, the Dollar Tree store relocated from North Henderson Street to a retail spot at the Galesburg Crossings. The City of Galesburg and the Knox County Area Partnership for Economic Development were key partners and were instrumental in bringing these national companies to the community, generating jobs and tax revenues. In 2015, a Holiday Inn Express & Suites opened on East Main Street. The prior Holiday Inn on Washington Street was renovated and converted into a Baymont Inn & Suites. Some other commercial and retail expansion include an Aldi grocery store which constructed a site in the Gale Village development on North Seminary Street and opened in 2013. The store features some modernizations such as energy efficient lighting. In 2019, Aldi’s added an additional 1,200 square feet in order to provide additional products for its customers. City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us iv In regards to restaurants, in 2015, the construction of a Happy Joe’s restaurant was completed on North Henderson Street. In 2016, the city welcomed an additional restaurant, Taco John’s on North Henderson Street. Also, in 2016, Arby’s restaurant demolished its old building and constructed a new restaurant at the same location on North Henderson Street. Finally, in 2016, Pizza Ranch opened its doors next to the Aldi’s grocery store on North Seminary Street. In 2017, two downtown restaurants opened, the Masa Sushi and Hibachi Steakhouse, which offers a variety of sushi entrees and traditional hibachi dinners and the Koreana Restaurant which features South Korean cuisine. Also, in 2017, Starbucks opened on North Henderson Street. In late 2017, Burger King opened its new restaurant on Seminary Street next to Casey’s General Store. In 2018, more restaurants opened. These restaurants include 156 East on Main Street; Craft Butcher and Deli on Seminary Street and Carriage House Bakery, Coffee and Ice Cream Shop also on Seminary Street. In 2019 Culver’s Restaurant open on Norther Henderson Street. Also, in 2019, McAlister’s Deli opened its new development on Gale Village Drive and the city welcomed Jimmy’s Pizza in the downtown area, Judy’s Family Café on North Broad Street and Papa John’s on North Henderson Street. In 2020, more restaurants opened in the city which includes La Cantinita, Lava Restaurant, and Lenny’s Grill & Subs. Galesburg has attracted new employers in the past few years due to the city’s low costs, market access and transportation assets. Retail developments in the downtown area include Jimmy John’s and Iron Spike Brewery. In 2017, a new shoe store, 6140Run! also located in the community. Through programs such as the City’s Revolving Loan Program, funds are made available for new entrepreneurs and small business start-ups. In recent years, new business start- ups occurred along Seminary Street and Main Street. Small business start-ups such as Denim and Pearls has impacted the city’s economy in a positive way. The facade improvements approved along Main Street have impacted the local economy by creating a vibrant and thriving downtown area. In 2015, Council approved a façade grant for 250 E Main Street. The scope of work involved window replacement on the north and east sides of the first floor and installation of new vestibules on the north and east sides. In 2016, the former Wells Fargo Bank building was renovated to house the new 24-hour, 10,000 square foot, Knox County YMCA location which now provides its members with two locations in the community. In 2017, the City Council approved a TIF and façade agreement for the new Cornucopia, an artisan and specialty grocery store which is located on South Seminary Street. In 2018, the City Council approved a façade agreement for 41 South Seminary Street. This improvement is for the site of a butcher shop and farm-to-table seasonal deli. In 2020, the City Council approved the façade assistance for 169 North Broad Street for the Safe Harbor Family Crisis Center Purple Hanger Resale Shoppe. Also, in 2020, a façade grant was provided to 66 North Seminary Street to assist in the restoration of the exterior of the building. In 2017, the City was awarded a $378,000 grant through the Illinois Housing Development Authority’s (IHDA) single-family rehabilitation grant program to make repairs on low-income houses over the next two year. The grant allows the City to present forgivable loans to approximately nine homeowners, depending on the cost of the work required in the homes. The homes selected for the program must be existing residential properties privately owned and used as the owner’s primary residence. The City committed $20,000 in matching funds for the grant. In 2017, the City was also awarded a grant worth $40,000 through IHDA’s Abandoned Residential Property Municipal Relief Program. The grant will reimburse the cost of approximately three to four houses the City demolished since 2015. In 2020, grant dollars in the amount of $250,000 was provided to businesses due to the interruption of services due to the COVID 19 pandemic. While not required for the grant, the City Council approved matching the grant dollars with City funds for the program in the amount of $250,000. The medical sector has also seen growth. Medical activities have included the construction of an addition to an oral surgeon's office, the construction of a hospital office and warehouse facility, City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us v a radiology addition to one of the hospitals and the construction of a chiropractic clinic. The Veterans Affairs (VA) Clinic constructed a facility which opened in 2013. In 2014, another medical clinic opened its doors, the Cancer Care Clinic, which constructed its facility near the VA outpatient clinic. The center offers treatment options for patients who would normally have to travel to Peoria and other cities to receive treatment. In early 2000, a multi-story medical office building was constructed by Cottage Hospital. In early 2006, Cottage Hospital opened a 14,000 square-foot, $6.5 million expansion project which brought the emergency and intensive care units together to help staff coordinate care more efficiently. In July 2015, the Cottage Hospital began an eighteen- month renovation valued at $5 million of its second and third floors which modernized patient rooms and renovated and updated the transitional care unit. The project also included the overhaul of the orthopedic center which includes six patient rooms and a gym for rehabilitation. In 2018, a new dialysis center, the Fresenius Kidney Care, was under construction across from Cottage Hospital on Seminary Street. This new site allowed expansion to expand dialysis services to patients, as well as offering its patients better access to space with better equipment. In late 2005, to keep up with rising patient volumes and new technology, OSF St. Mary Hospital undertook a $6.2 million building project on the designated Level II Trauma Center. In 2015, OSF St. Mary Hospital unveiled a $3.35 million intensive cardiac care unit of the hospital which allowed the hospital to expand technological features. In 2015, the OSF hospital also completed the mammography unit, chapel and admitting area and began renovation of its laboratory. In 2016, the OSF’s Galesburg Health Clinic revealed the newly remodeled clinic, estimated at $12 million, which included 40 new exam rooms, a new lobby and moving all outpatient care units to the first floor. Also, in 2016, the OSF Prompt Care Clinic moved its location to the OSF St. Mary Center campus on Seminary Street. This relocation provided an opportunity for patients to receive care for minor injuries and illnesses and, if needed, provide the patient with emergent care in a more- timely manner. In 2017, the main lobby of the OSF St. Mary Medical Center renovation was completed, with a value of approximately $2.2 million, to create a more efficient flow for patients and visitors while creating a more open and healing environment. In 2017, the OSF group began working on the $22 million expansion and renovation of the surgery, laboratory department and center for outpatient services. Also, in 2017, OSF Life Flight began a daily relocation of a Peoria- based helicopter to the OSF St. Mary Medical Center in Galesburg. The repositioning occurs, weather permitting, during daytime hours. The repositioning allows OSF HealthCare to provide a more-timely response to patients as approximately 80 percent of all patients transported by the helicopter are transferred from the west-central region area which includes Galesburg, Monmouth, Kewanee, and the Quad-Cities. In 2020, OSF expansion projects included a new family birthing center and expansion and renovation of the surgical services floor, center for outpatient services, and laboratory. During 2020, OSF started providing inpatient dialysis and an extensive brick replacement project; in total, more than $30 million was invested back into the Galesburg community. Local government has also added to the local economy through construction projects. In 2015, the Galesburg transit buses and handivans relocated to a new City transit facility on Monmouth Boulevard. The 20,000 square foot facility was constructed with federal and state grant funds for a total of approximately $4.2 million. Also, in 2015, an open house was held at the newly renovated Amtrak train station. Amtrak improvements included a windowed extension to the depot looking out on the railroad tracks and the addition of a ticket booth for Burlington Trailways buses. The project cost more than $880,000 and was funded through grants. Finally, in 2015, a parking lot renovation, located at Seminary Street and Mulberry Street, with a cost of approximately $770,000, was completed. The project added parking spots, widening of the entrance, landscaping, and decorative lighting. In 2017, the City completed the renovation of the Public Safety Building. In 2017, the Knox County Courthouse completed the final major phase of its exterior renovation projects which included the reconstruction of the east entrance. The City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us vi total cost of the project was approximately $334,000. The newly renovated Park Plaza opened on September 30, 2020. Both Park Plaza and Parking Lot E underwent renovations to the existing spaces that had become deteriorated. The $1.54 million project provides a newly renovated area downtown space for community events. Various educational sites have already or will be changing. The Knox College Office of Communications moved its office about one-half block from the college’s campus to a former lumber company building. In 2012, one of the five elementary schools, Steele School, received $5.5 million in renovations which included remodeling of classrooms, a new gymnasium/multi- purpose space and a new administrative area. In 2014, the Galesburg High School officially opened its new athletic stadium. The $16 million project includes a football complex, 50,500 square foot multi-purpose building, attached two-story field house and a 2,840-seat stadium. Additionally, two new basketball courts, tennis courts, soccer field and improvements to the varsity baseball and wrestling areas were completed. In 2015, the Galesburg High School renovated the front entry way of its main building. The project included the renovation of the lobby and entryway to feature glass ceiling to floor, the removal of asbestos, and the replacement of flooring at an estimated cost of approximately $2.5 million. Also, in 2015, the Galesburg CUSD 205 began the construction of a new elementary school with an estimated cost of $18.2 million which replaced one of the five elementary schools in the district and opened the doors of the new school in 2016. Finally, in 2015, Knox College received a $5 million donation to support the construction of the new Whitcomb Art Building. The vibrancy of Knox’s art culture is displayed from the building’s dynamic façade which comprises of large, sliding doors that serve as sun- shading devices by moving with the changing seasons. The Whitcomb Art Building, costing approximately $8.0 million, was dedicated and opened in 2016. In 2018, the Galesburg school board approved a $56 million facilities plan of renovating some existing buildings and allowing some other buildings to be decommissioned. The addition and renovation projects took place at Lombard Middle School, King Elementary School, Steele Elementary School, and the Galesburg High School. The Lombard, Steele and King projects were completed for the 2020/2021 school year. Residential and commercial programs and construction has also occurred in the city. In 2012, a 60 unit, 144-bedroom complex was constructed to fill a void in the student housing market for Carl Sandburg College. In order to provide future interest in the development of a residential subdivision, in March 2015, the City Council approved a residential infrastructure assistance program. The program is an incentive program that provides financial assistance to encourage single family and two-family residential development in instances where the cost of infrastructure proves to be a barrier to development otherwise occurring. By providing an incentive program, such as this one, the City could see a return on its investment with additional families in the community, as well as, an increase in the City’s property tax base. In 2016, a new subdivision project, Lincoln Park Estates, began to construct town homes and single-family dwelling houses. The first units were ready for families in 2017. In 2017, the City Council approved the development agreement with MLKKM Properties, LLC on the development of approximately six acres of commercial property north of Gale Village. It is anticipated that after the commercial property is developed, the next step of the plan is to develop residential property in the area. The City has completed the construction of three grade separations, with a combined total value of $33.5 million. In 2012, the first bridge, the West Main Street overpass, or the Moffitt bridge, was completed. In 2014, the North Seminary Street bridge, the Bickerdyke Bridge, was completed and allows better access and removes the delay of railroad traffic to the medical facilities when traveling from the south to north end of the community. The final bridge completion on East Main Street was completed in the summer of 2018. Given the difficulty and timeliness needed to complete the East Main Street underpass bridge, this project was intentionally left as the last one to be completed. The grade separations improve emergency response times and traffic. City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us vii The most recent per capita income is reported at approximately $40,363. In 2011, the unemployment rate was 8.7% and in 2020 the rate decreased to 8.6%. The unemployment rate for the two reported years is relatively similar. The unemployment did increase from 5% in 2019 to 8.6% in 2020 which could be a result of a decrease in business activity in 2020 due to the COVID 19 pandemic. With the current information available, in ten years, school enrollment decreased by 399 students, bringing the student body total to 3,931 students in 2020. The decrease could be attributed to the decrease in population during the same time period. Long-term financial planning As a strategic plan for future business growth, the City owns a logistics park consisting of approximately 350 acres. The location of the logistics park is exceptional as Interstate 74 is adjacent to the north of the park, the Burlington Northern Santa Fe Railway and Illinois Route 150 are adjacent to the south of the park, and Knox County Highway 10 is adjacent to the east of the park. All infrastructures are adjacent to the site. Additional infrastructure improvements have been implemented such as water line extension, sewer extension, broadband upgrades, and curb cuts. Also, as a result of the annexation of the logistics park properties, various properties became contiguous to the City limits. In 2019, the city-owned park was named a certified site in the BNSF Premier Parks, Sites and Transload program. At the time, the park joined only 17 other rail-served sites in the U.S. as part of BNSF’s certification program, which means these parks will be marketed by BNSF. BNSF created the certification program to help identify and develop rail-oriented sites. Site certification is a process where a third party evaluates the shovel-readiness of development site. The designation is an important marketing item that communicates to prospective developers that the site has been vetted and that development on the site can proceed in an expedited manner. Businesses that locate on a certified site can expect development timelines to be shorter. The City established the Planning Fund to plan and prepare for future capital improvements to City owned buildings. The Planning fund’s purpose is to achieve high impact, quality of life or economic development pursuits that will further stabilize the City’s revenue sources. The Planning Fund provides the City Council with opportunity and funds to direct Administration to pursue short-term and long-term projects that will enhance the community in a variety of ways. In June 2008, the City Council approved the ordinances adopting, designating, and approving the TIF IV Redevelopment Project Area and an ordinance adopting tax increment financing for same. The TIF IV encompasses the majority of the downtown area not already located within TIF I, as well as the East Main Street corridor stretching to I-74. The TIF IV district has a life of 23 years in accordance with state statute. The City has voluntarily agreed to refund increment to affected taxing bodies after 12 years for the portion of the district located east of Grand Avenue. The establishment of the TIF IV district plays a crucial role in providing redevelopment incentives for the affected areas. The City Council also approved the ordinances adopting, designating, and approving the TIF V Redevelopment Project Area and an ordinance adopting tax increment financing for same. The TIF V encompasses the area east of I-74 and located along East Main Street. The TIF V district will has a life of 23 years in accordance with state statute. The establishment of the TIF V district plays a crucial role in providing redevelopment incentives for the affected area and to induce additional highway commercial development. The purpose of the TIF programs includes the following: 1) to stabilize property values in the proposed district, 2) to induce redevelopment of dilapidated, obsolescent or severely limited parcels, 3) to provide necessary public infrastructure and facilities to accommodate development, and 4) to increase the value of properties within the TIF through the above activities. City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us viii In August 2009, the City successfully applied for a twenty-year, zero percent, $1.1 million public water supply loan with one-half of the loan being funded under the American Recovery and Reinvestment Act of 2009 (ARRA) and with only one-half of the ARRA funds needing to be repaid. The work funded by the loan and stimulus funds included flood proofing existing structures at the City’s water production facilities along the Mississippi River near Oquawka by raising structures, waterproofing, and adding flood doors and sheet piling to protect the facilities. In 2011, the construction of a water treatment plant in Oquawka, Illinois was completed. The estimated $18 million construction project was funded through two bond issuances; $10 million of general obligation bonds sold in December 2007 and $10 million of revenue bonds sold in November 2008 with both bond issues being refunded for savings purposes in 2015 and 2017, respectively. In order to pay the annual debt service payment for these two bond issuances, the Water Fund must have water rates established to cover the principal and interest costs, approximately $1.3 million, for each year. The newer facilities are a significant improvement over the existing facilities. The facilities in Oquawka include filters, water contact storage tanks, well pumps, increased capacity of the chlorination system, and an overall increase in capacity to 12 million gallons per day of total production. The improvements provide finished water through the City’s pipeline which greatly benefits the existing transmission pipeline and treatment process and allows the City to be a more regional provider of finished water. In December 2011, the City Council approved an ordinance which would establish the Simplified Municipal Telecommunications Tax from 2% to 5%. The increase in the tax is utilized to assist in the funding of the 9-1-1 operations. In 2013, the City Council approved the creation of a Business Development District (BDD). The BDD was created to assist with funding public infrastructure required for the Gale Village subdivision on North Seminary Street, near the U.S. 34 interchange. A BDD is a special taxing district, authorized to undertake certain public improvements to be financed through the issuance of notes or bonds that are, in turn, retired by the levy of a sales tax within the geographic boundaries of the district. In this case the proposed tax would be a one percent sales tax and a one percent hotel tax applied within the district. Prior to creation of the BDD, the cost to upgrade existing infrastructure and build new infrastructure sufficient to support new development created a financial burden that deterred growth in that area. The BDD will allow for public improvements to take place and the area within the BDD will be more attractive for future development which would increase the city’s tax base. In 2013, the City Council approved the establishment of the Galesburg Promise which is a program to provide scholarships for the Galesburg students to attend Carl Sandburg College. The purpose of the program is to keep young people in our community and increase the educational level of our workforce. A skilled workforce is essential to attract new business and provide workers for existing businesses to grow and expand. In addition, a significant number of students attending Community Unit School District 205 come from homes that have income levels at or below the poverty. Finally, the program serves as a motivator for youth to complete high school and be confident that they will have access to an opportunity at Carl Sandburg College. Funds for the program come from public and private sources with the City’s portion coming from a portion of the generated hotel/motel tax. In 2016, the City Council improved an increase in the hotel/motel tax, effective January 1, 2017, with the additional revenue going to the Galesburg Promise Program. An account is established at the Galesburg Community Foundation to receive, invest, and disburse the funds. A governing board of City, Carl Sandburg College and District 205 members oversee operations and report to the participating institutions. In 2014, a new public-private partnership for economic development was created. The City Council approved the agreement to work with a new executive director and board of directors for the entity with the aim of growing jobs and retaining business, locally. The new partnership is a City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us ix valuable resource for new and existing companies that are interested in pursuing business opportunities in the Galesburg area. In 2015, the City Council approved an electric and natural gas utility tax to fund capital improvements and infrastructure. The utility tax went into effect on January 1, 2016. A portion of the tax is used to fund general obligation bonds to pay for various capital improvement projects that will be completed throughout the community. In 2016, the City Council authorized the issuance of approximately $10 million in general obligation bonds to cover various capital and infrastructure projects completed within the city. A portion of the utility tax is utilized to fund the bonds for the capital projects. The debt was structured as a 20-year issuance with a final payoff in 2035. The City plans to abate property taxes on the debt. In 2016, the City was successful in applying for a $4 million forgivable loan from the IEPA to replace a portion of the privately-owned lead line water services. The replacement of the lead lines was completed by a high propriety-based selection on various criteria and by application of property owners to participate in the replacement program. The replacement of privately-owned lead line services began in 2017 and will continue throughout the years. Phase I of the project replaced 499 lead service lines. In 2018, the City Council approved Phase II of the replacement of lead water service lines financed through a $2 million forgivable loan from the IEPA Public Water Supply Loan Program. The second phase of the project replaced 549 lead water service lines. The second group of addresses were selected with the same criteria as Phase I, prioritizing all homes that exceeded the EPA action level of 15 ppb when tested, low to moderate income homes in low to moderate income neighborhoods identified in the 2010 census. In 2019, the City Council approved Phase III of the replacement of lead water service lines financed through a $2 million forgivable loan. The third phase of the project replaced 553 lead water service line. In 2020, the City Council approved Phase IV of the replacement of lead water service lines through the forgivable loan program in the amount of $2 million. The scope of this fourth phase of the project is to replace approximately 525 lead water service lines with the anticipated completion date of May 2021. Phase V of the project is anticipated to be schedule during the fiscal year 2021 which will then leave approximately 500 active lead service lines remaining to be replaced. In 2018, the City Council approved lease agreements with Community Power Group (CPG) for community solar gardens to be located at the Logistics Park property which was earlier described. The term of the leases will be 25-years with up to two five-year extensions upon mutual agreement of both parties. CPG will have up to three years from the effective date of the lease agreement to start installation work, if not, then the City has the right to terminate the agreement. The solar arrays will be Community Solar Gardens with up to 40 percent of the power produced being sold back to the City of Galesburg for municipal use and the balance being sold to residents in the local community at a reduced rate. Also, in 2020, The City Council approved a land lease with the National Stearman Foundation to provide a permanent home for a facility for the National Stearman Fly-In at the Galesburg Municipal Airport. In 2019, Public Act 101-0027 legalized the sale, possession and use of cannabis for recreational purposes by adults over age 21 starting January 1, 2020. It allows municipalities to adopt zoning rules for cannabis related businesses. With the possibility of providing additional revenue, in 2019, the City Council approved a 3% use tax that will be utilized to assist in providing services to the citizens of the community. This tax is collected by the Illinois Department of Revenue and remitted to the City. City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us x In order to promote tourism, in December 2019, the City Council approved a three-year agreement with the Galesburg Tourism and Visitors Bureau. This group has incorporated and has undertaken the necessary steps to receive grant funding from the state. The group has a nine-member board which includes the city manager and the mayor. In 2020, the Galesburg Transit Corporation was dissolved, and the assets were turned over to the City to allow the City to manage and operate the fixed route transit operation for the community. By combining the fixed route bus services with the handivan services, the City can realize increased responsiveness and accountability, better utilization of fleet resources and maintenance capacities and eliminate duplicated administrative services. Also, in 2020, the City began the $1.5 million rehabilitation of an existing cold storage building to house the Street Department inside storage and office building. In 2020, the City contracted the professional services of a firm to conduct a water rate study for the Water Department. Under the agreement, the firm would provide information on topics such as a review of the existing water rates and develop a recommended rate structure, develop a long- term financial plan and review operating and maintenance costs including a review of the administrative overhead. Also, in 2020, the solar field in Oquawka went active and will produce energy for the water treatment plant and to feed the power grid. With this solar project, the City will realize a decrease in energy costs to operate the treatment plant. Energy aggregation was approved by the citizens of Galesburg with the election in November 2012. For historical purposes, in 2016, the City Council approved a 24-month agreement for municipal aggregation of 100 percent renewable electric supply with Homefield Energy in the amount of $0.05635/kwh. In 2018, the City Council approved a 36-month agreement with Homefield Energy with a rate of $0.04921/kwh with 100% renewable energy for year one and $0.04912 for years two and three. It is anticipated that in 2021, citizens will economically benefit from a 36-month agreement with Homefield Energy with a rate of $0.05499/kwh with 100% renewable energy. Since 2010, the City has worked with a consultant to bid out City electricity in order to ensure the City is receiving competitive rates from reliable energy suppliers for its own municipal use. The prior two agreements expired on September 30, 2016 and September 30, 2018 for 100 percent renewable energy at the cost of $0.04389/kWh and $0.05366/kWh, respectively. The contract, approved in 2018, for 36-months was for renewable energy at the cost of $0.04486/kWh. It is anticipated that in 2021, City administration will request bids from providers to establish an agreement for future rates and service for its own municipal use. Relevant financial policies The City’s Investment Policy is presented and approved on an annual basis for City Council’s review. The goal of the City management is to have 100% of its idle funds invested at all times in interest bearing accounts. This goal will ensure City management is using the available funds to their maximum. The Investment Policy states that all available funds are managed and invested with three primary objectives listed in priority order: safety, liquidity and return on investment. Investment opportunities are limited by the parameters found in Illinois Statutes 30ILCS235. The prudent person standard is used in managing the City’s overall portfolio. Each year the City’s Financial Policies are reviewed and updated where necessary to consider changes in GAAP, Government Audit Standards, and the City’s budget process. The financial policies include a definition of the financial reporting entity, measurement focus and basis of accounting, operating revenue policies, operating expense policies, balance sheet policies, budget policies, capital improvement policies, vehicle replacement plan policies, building repair and maintenance plan policies, computer replacement plan policies, debt policies, federal funding City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us xi in relation to OMB Guidance, pension policies, risk management policies, economic development fund and GASB 34. The Council annually approves the financial policies to ensure funds are spent and managed in the most cost-effective manner based on the services provided while ensuring the financial records are maintained in accordance with GAAP, Government Auditing Standards and state and federal laws. During the annual budget process, the City staff will review and modify user fees to recover the necessary costs associated with issuing and administering various services. Such fees include licenses, fines, permits and user fees. The recommended fee changes are provided to City Council for consideration. If approved by Council, the revenue changes are incorporated into the City’s annual budget. Major Initiatives Galesburg is a great place to work, live and raise a family. The City of Galesburg is dedicated to constantly improving the delivery of its services thereby enhancing the quality of life for its residents and the operating environment for its businesses. Among the City’s more significant accomplishments in 2020 were the following: • Approved the replacement of additional privately owned lead service lines. The scope of this fourth phase of the project is to replace 525 lead water service lines. • The completion of the downtown reconstruction of Park Plaza and parking lot E. • The reconstruction of Monroe Street. • The reconstruction of Phillips Street. • Documented and submitted reimbursement to recover the full reimbursement allowance in the amount of $1.3 million for the Local Coronavirus Urgent Remediation Emergency (CURE) grant. • Through the Illinois Housing Development Authority Single Family Rehab award, the City assisted low and very low-income homeowners with home maintenance items and/or to remove home health and safety hazards. • To increase responsiveness and accountability to the residents, the Galesburg Transit Corporation was dissolved, and the assets were turned over to the City to manage and operate the fixed route transit operation. • With an approved agreement, a solar field in Oquawka was installed to produce energy for the water treatment plant and to feed the power grid which will allow the City to reduce operation costs for the water treatment plant. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Galesburg for its comprehensive annual financial report for the fiscal year ended December 31, 2019. This was the twenty-fifth consecutive fiscal year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both general accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. City Hall • 55 West Tompkins Street • Galesburg, IL 61401 • 309/343-4181 • www.ci.galesburg.il.us The preparation of this report would not have been possible without the efficient and dedicated service of the entire staff of the finance department and all other offices that provided assistance and support throughout the preparation of this report. We extend our appreciation to everyone who assisted in this effort. I would also like to thank the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Galesburg’s finances. Respectfully submitted, Gloria Osborn Director of Finance and Information Systems xii Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Galesburg Illinois For its Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2019 Executive Director/CEO xiii CITY OF GALESBURG Organizational Chart Operating Under Council – Manager Government Since 1957 Updated: 02/05/21- CMS CITIZENS OF GALESBURG CITY CLERK MAYOR AND COUNCIL CITY MANAGER POLICE DEPARTMENT Field Operations Patrol Investigation Animal Control (Contracted) Staff and Services 911 Information Systems Evidence PUBLIC WORKS Streets Engineering Water Garage PLANNING Housing Inspections Handivan Transit Refuse (Contracted) Economic Development (Contracted) PARKS AND RECREATION Park Facilities Recreation Programs Bunker Links Golf Course Airport Linwood Cemetery Forestry FIRE DEPARTMENT Fire Suppression & Rescue Fire Prevention Emergency Management (Knox County) FINANCE Information Systems Purchasing Accounting Customer Service Payroll Utility Billing Budgeting ADMINISTRATION Human Resources/ Risk Management Benefits Administration Legal xiv xv City of Galesburg, Illinois Elected and Appointed City Officials Year Ended December 31, 2020 Elected Officials John Pritchard Mayor Aldermen Bradley Hix, First Ward Wayne Dennis, Second Ward Lindsay Hillery, Third Ward Corine Andersen, Fourth Ward Peter Schwartzman, Fifth Ward Wayne Allen, Sixth Ward Larry Cox, Seventh Ward Kelli Bennewitz City Clerk Gloria Osborn City Treasurer Appointed Officials Todd Thompson City Manager Department Directors Wayne Carl, Director of Public Works Bradley Nolden, City Attorney/Administrative Services Director Gloria Osborn, Director of Finance and Information Systems Tony Oligney-Estill, Director of Parks and Recreation Ryan Berger, Director of Community Development Russell Idle, Police Chief Randy Hovind, Fire Chief Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly US, LLP Independent Auditors' Report To the Mayor and City Council of City of Galesburg, Illinois Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, the discretely presented component unit, and aggregate remaining fund information of the City of Galesburg, Illinois, as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City of Galesburg's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Town of the City of Galesburg, which represent 2 percent, 9 percent, and 1 percent, respectively, of the assets/deferred outflows of resources, net position, and revenues of the governmental activities and 2 percent, 2 percent, and 3 percent, respectively, of the assets/deferred outflows of resources, fund balances/net position, and revenues/additions of the aggregate remaining fund information. W e also did not audit the Galesburg Public Library Foundation, which represents 33 percent, 74 percent, and 16 percent, respectively, of the assets/deferred outflows of resources, net position, and revenues of the discretely presented component unit. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Town of the City of Galesburg and the Galesburg Public Library Foundation, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of the Town of the City of Galesburg and the Galesburg Public Library Foundation were not audited in accordance with Government Auditing Standards. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control over financial reporting relevant to the City of Galesburg's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the City of Galesburg's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 Opinions In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, the discretely presented component unit, and aggregate remaining fund information of the City of Galesburg, Illinois, as of December 31, 2020 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. W e have applied certain lim ited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. W e do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Galesburg's basic financial statements. The the supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the the supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Galesburg's basic financial statements. The introductory section and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 25, 2021 on our consideration of the City of Galesburg's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Galesburg's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Galesburg's internal control over financial reporting and compliance. Oak Brook, Illinois June 25, 2021 3 City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 4 It is an honor to present to you the financial picture of the City of Galesburg, Illinois (the "City"). We offer readers of the financial statements this narrative overview and analysis of the financial activities of the City for the year ended December 31, 2020. We encourage readers to consider the information presented herein in conjunction with the transmittal letter found in the introductory section and the basic financial statements to enhance their understanding of the City’s financial performance. Certain comparative information between the current year and the prior is required to be presented in the Management’s Discussion and Analysis (the “MD&A”). Financial Highlights > The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $52.7 million (net position). > In total, net position decreased by $4.7 million. > As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $42.0 million, an increase of $0.9 million in comparison with the prior year. Approximately $9.2 million is available for spending at the government’s discretion (unassigned fund balance). > General revenues accounted for $32.5 million in revenue or 71 percent of all governmental revenues. Program specific revenues in the form of charges for services and fees and grants accounted for $13.1 million or 29 percent of total governmental revenues of $45.6 million. > The City had $51.2 million in expenses related to government activities. However, only $13.1 million of these expenses were offset by program specific charges and grants. > At the end of the current fiscal year, unassigned fund balance for the General Fund was $11.3 million, or 48.7 percent of total General Fund expenditures. > The City’s total long-term debt, excluding compensated absences, net pension liability, and net OPEB liability, decreased by $1.7 million during the current year to $24.2 million. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The basic financial statements are comprised of three components: > Government-wide financial statements, > Fund financial statements, and > Notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business, and are reported using the accrual basis of accounting and economic resources measurement focus. The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the fiscal year being reported. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 5 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, economic development, public safety, public works, and culture, education, and recreation. The government-wide financial statements include the funds of the City (primary government) and an organization for which the City is accountable (Galesburg Public Library, a discretely presented component unit). Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary and fiduciary funds. Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements and are reported using the modified accrual basis of accounting and current financial resources measurement focus. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources; as well as, on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a City’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 4 major individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Economic Development Fund, Parks and Recreation Fund, and Public Transportation Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining schedules elsewhere in this report. The City adopts an annual budget for each of the major funds listed above. A budgetary comparison statement has been provided for each major fund to demonstrate compliance with this budget. City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 6 Proprietary funds The City maintains two different types of proprietary funds: enterprise and internal service. Enterprise funds are used to report the same functions presented as business type activities in the government–wide financial statements. The City utilizes enterprise funds to account for its water utility and refuse services. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses an internal service fund to account for liability insurance. Because this service predominantly benefits governmental rather than business-type functions, it has been included within governmental activities in the government-wide financial statements. Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water Fund and the Refuse Fund. Conversely, the internal service fund is combined into a single, aggregated presentation in the proprietary fund financial statements. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that for the government-wide financial statements. Notes to basic financial statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s pensions and other post-employment benefits. Supplementary schedules include combining and individual fund schedules of all non-major funds and Fiduciary Funds. City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 7 Government-Wide Financial Analysis Table 1 Condensed Statements of Net Position (in millions of dollars) Governmental Activities Business-Type Activities Total 2020 2019 Change 2020 2019 Change 2020 2019 Change Assets Current and other assets $ 58.5 $ 56.9 2.8% $ 13.8 $ 14.1 (2.1)% $ 72.3 $ 71.0 1.8% Capital assets 79.6 79.5 0.1% 34.9 33.8 3.3% 114.5 113.3 1.1% Total assets 138.1 136.4 1.2% 48.7 47.9 1.7% 186.8 184.3 1.4% Deferred outflows of resources Deferred outflows related to pensions and OPEB 31.3 30.5 2.6% 0.8 1.4 (42.9)% 32.1 31.9 0.6% Deferred charge on refunding - - -% 0.9 1.0 (10.0)% 0.9 1.0 (10.0)% Total deferred outflows of resources 31.3 30.5 2.6% 1.7 2.4 (29.2)% 33.0 32.9 0.3% Liabilities Long-term liabilities 125.5 120.3 4.3% 16.7 18.6 (10.2)% 142.2 138.9 2.4% Other liabilities 3.1 3.5 (11.4)% 3.1 2.4 29.2% 6.2 5.9 5.1% Total liabilities 128.6 123.8 3.9% 19.8 21.0 (5.7)% 148.4 144.8 2.5% Deferred inflows of resources Property taxes levied for future periods 9.6 9.6 -% - - -% 9.6 9.6 -% Deferred inflows related to pensions and OPEB 8.4 5.1 64.7% 0.7 0.3 133.3% 9.1 5.4 68.5% Total deferred inflows of resources 18.0 14.7 22.4% 0.7 0.3 133.3% 18.7 15.0 24.7% Net position Net investment in capital assets 70.8 70.1 1.0% 21.5 19.5 10.3% 92.3 89.6 3.0% Restricted 8.5 8.7 (2.3)% - - -% 8.5 8.7 (2.3)% Unrestricted (56.5) (50.4) 12.1% 8.4 9.5 -11.6% (48.1) (40.9) 17.6% Total net position $ 22.8 $ 28.4 (19.7)% $ 29.9 $ 29.0 3.1% $ 52.7 $ 57.4 (8.2)% Normal Impacts There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net results of activities – which will impact (increase/decrease) current assets and unrestricted net position. Borrowing for capital – which will increase current assets and long-term debt. City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 8 Spending borrowed proceeds on new capital – which will: (a) reduce current assets and increase capital assets; and, (b) increase capital assets and long-term debt, which will not change the net investment in capital assets. Spending of non-borrowed current assets on new capital – which will: (a) reduce current assets and increase capital assets; and, (b) will reduce unrestricted net position and increase net investment in capital assets. Principal payment on debt – which will: (a) reduce current assets and reduce long-term debt; and, (b) reduce unrestricted net position and increase net investment in capital assets. Reduction of capital assets through depreciation – which will reduce capital assets and net investment in capital assets. Current Year Impacts As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, total net position decreased by $4.7 million from $57.4 million to $52.7 million. The City's total assets and deferred outflows equal $219.8 million. The City's total liabilities and deferred inflows equal $167.1 million. By far the largest portion of the City’s net position is its investment in capital assets. This consists of land, buildings, machinery, equipment and infrastructure less depreciation and any related outstanding debt used to acquire these assets. The City uses these capital assets to provide services to the residents; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A restricted portion of the City’s net position represents resources that are subject to external restrictions on how they may be used. The governmental activities unrestricted balance had a deficit of $56.5 million in 2020 as a result of recording the net pension liabilities for IMRF, Police, and Firefighters' pension plans and the net OPEB liability. The unrestricted balance for business-type activities of $8.4 million may be used to meet the ongoing City obligations to their citizens and creditors. City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 9 Table 2 Condensed Statements of Activities (in millions of dollars) Governmental Activities Business-Type Activities Total 2020 2019 Change 2020 2019 Change 2020 2019 Change Revenues Program revenues Charges for services $ 5.0 $ 5.1 -2.0% $ 9.9 $ 9.3 6.5% $ 14.9 $ 14.4 3.5% Operating grants and contributions 6.6 4.9 34.7% - - -% 6.6 4.9 34.7% Capital grants and contributions 1.5 2.1 -28.6% - - -% 1.5 2.1 -28.6% General revenues Property taxes 9.7 9.7 -% - - -% 9.7 9.7 -% Other taxes 21.5 21.5 -% - - -% 21.5 21.5 -% Other general revenues 1.3 1.7 -23.5% 0.1 0.3 -66.7% 1.4 2.0 -30.0% Total revenues 45.6 45.0 1.3% 10.0 9.6 4.2% 55.6 54.6 1.8% Expenses General government 11.6 10.7 8.4% - - -% 11.6 10.7 8.4% Economic development 2.1 1.9 10.5% - - -% 2.1 1.9 10.5% Public safety 26.3 24.7 6.5% - - -% 26.3 24.7 6.5% Public works 6.3 6.3 -% - - -% 6.3 6.3 -% Culture, education, and recreation 4.6 4.0 15.0% - - -% 4.6 4.0 15.0% Interest and fiscal charges 0.3 0.4 -25.0% - - -% 0.3 0.4 -25.0% Water - - -% 6.4 6.4 -% 6.4 6.4 -% Refuse - - -% 2.7 2.5 8.0% 2.7 2.5 8.0% Total expenses 51.2 48.0 6.7% 9.1 8.9 2.2% 60.3 56.9 6.0% Change in net position (5.6) (3.0) 86.7% 0.9 0.7 28.6% (4.7) (2.3) 104.3% Net position, beginning of year 28.4 31.4 -9.6% 29.0 28.3 2.5% 57.4 59.7 -3.9% Net position end of year $ 22.8 $ 28.4 -19.7% $ 29.9 $ 29.0 3.1% $ 52.7 $ 57.4 -8.2% Table 2 highlights the City’s revenues and expenses for the fiscal years ended December 31, 2020 and 2019. These two main components are subtracted to yield the change in net position. This table utilizes the full accrual method. Normal Impacts There are eight basic (normal) impacts that will affect the comparability of the revenues and expenses on the Statement of Activities summary presentation. Revenues Economic condition – which can reflect a declining, stable or growing economic environment, and has substantial impact on state sales, replacement and hotel/motel tax revenue; as well as, public spending habits for building permits, elective user fees, and volumes of consumption. Increase/decrease in City approved rates – while certain tax rates are set by statute, the City has significant authority to impose and periodically increase/decrease rates (water, home rule sales tax, etc.). City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 10 Changing patterns in intergovernmental and grant revenue (both recurring and non-recurring) – certain recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non-recurring grants are less predictable and often distorting in their impact on year to year comparisons. Market impacts on investment income – the City’s investments may be affected by market conditions causing investment income to increase/decrease. Expenses Introduction of new programs – within the functional expense categories (general government, economic development, public safety, public works, and culture, education, and recreation), individual programs may be added or deleted to meet changing community needs. Change in authorized personnel – changes in service demand may cause the City to increase/decrease authorized staffing. Staffing costs (salary and related benefits) represent the largest operating cost of the City. Salary increases (annual adjustments and merit) – the ability to attract and retain human and intellectual resources requires the City to strive to approach a competitive salary range position in the marketplace. Inflation – while overall inflation appears to be reasonably modest, the City is a major consumer of certain commodities such as supplies, fuel, and parts. Some functions may experience unusual commodity specific increases. Current Year Impacts The Governmental Activities decreased the City's net position by $5.6 million. Key elements contributing to this change are as follows: Governmental Activities City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 11 Revenues Revenues are divided into two major components: program revenue and general revenue. Program revenue is defined as charges for sales and services, operating grants and contributions and capital grants and contributions. General revenue includes taxes, investment income and other unrestricted revenue sources. The City experienced an increase of 1.3 percent in revenue due to an increase in various state-shared tax revenues and operating grants and contributions from state and federal agencies. Expenses The City’s overall expenses in the current fiscal year increased, and resulted in a decrease in net position to $22.8 million compared to $28.4 million in the prior fiscal year. Overall, the City's financial position has not improved since the prior fiscal year. Financial Analysis of the City’s Funds The fund balance of the City’s General Fund of $11.9 million, an increase of $1.8 million from 2019. For more information, see the General Fund Budgetary Highlights section. The Economic Development Fund had an ending fund balance of $11.4 million, an increase of $0.2 million from 2019. The Parks and Recreation Fund had an ending fund balance of $2.0 million, an increase of $0.1 million from 2019. The Public Transportation Fund had an ending fund deficit of ($1.1) million, a decrease of $0.5 million from 2019. City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 12 General Fund Budgetary Highlights Overall, General Fund revenue was $0.1 million more than the final budget and expenditures were $0.6 million less than the final budget. Specific highlights of General Fund revenue and expenditures are as follows: > Charges for service revenues were in line with the final budget. > Intergovernmental revenues were in line with the final budget. > Contracts and subsidies expenditures were $0.1 million less than the final budget. In 2020, total expenditures increased $0.3 million from the original budget to the final amended budget. These budget increases were mostly in the police and fire departments (increasing $0.2 million and $0.1 million, respectively). Other expenditure categories and other financing sources (uses) decreased slightly from original to final budget. Total revenues increased $2.3 million from the original budget to the final amended budget. The budget increase was mainly related to intergovernmental revenues (increasing $2.0 million) and other tax revenues (increasing $0.3 million). Capital Assets and Debt Administration Capital assets By the end of 2020, the City had compiled a total investment of $173.6 million ($114.5 million net of accumulated depreciation) in a broad range of capital assets including land, construction-in-progress, land improvements, buildings and improvements, machinery and equipment, and infrastructure. Total depreciation expense for the year was $4.0 million. More detailed information about capital assets can be found in Note 3 of the basic financial statements. Major capital asset events during the year ended December 31, 2020 included the reconstruction of Monroe Street in the amount of $985,917; the gravel pack well #5 in the amount of $959,302; and the reconstruction of Phillips Street in the amount of $858,143. Table 3 Capital Assets (net of depreciation) (in millions of dollars) Governmental Activities Business-Type Activities Total 2020 2019 Change 2020 2019 Change 2020 2019 Change Land $ 6.3 $ 6.3 -% $ 0.7 $ 0.7 -% $ 7.0 $ 7.0 -% Construction in progress 1.8 3.3 -45.5% 0.3 0.7 -57.1% 2.1 4.0 -47.5% Land improvements 2.1 2.0 5.0% - - -% 2.1 2.0 5.0% Buildings and improvements 9.6 9.6 -% 19.9 18.3 8.7% 29.5 27.9 5.7% Equipment 6.0 5.9 1.7% 1.7 1.8 -5.6% 7.7 7.7 -% Infrastructure 53.8 52.4 2.7% 12.3 12.3 -% 66.1 64.7 2.2% Total $ 79.6 $ 79.5 0.1% $ 34.9 $ 33.8 3.3% $ 114.5 $ 113.3 1.1% Debt Administration The table below summaries the City’s bonded and similar indebtedness. As of December 31, 2020, the City had a total of $24.2 million of long-term debt outstanding (excluding compensated absences, net pension liability, and net OPEB liability). Of this amount, $23.8 million was in the form of general obligation bonds backed by the full faith and credit of the City government. More detailed information about debt administration can be found in Note 3 of the basic financial statements. City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 13 Table 4 Long-Term Debt (in millions of dollars) Governmental Activities Business-Type Activities Total 2020 2019 Change 2020 2019 Change 2020 2019 Change General obligation bonds $ 10.0 $ 10.7 -5.8% $ 13.8 $ 14.7 -6.1% $ 23.8 $ 25.4 -6.3% Notes payable - - -% 0.4 0.5 -20.0% 0.4 0.5 -20.0% Total $ 10.0 $ 10.7 -6.5% $ 14.2 $ 15.2 -6.6% $ 24.2 $ 25.9 -6.6% Factors Bearing on the City’s Future > Over the years, one of the City’s strengths has been its strong financial condition and good financial management which is proven by good reserves and strong bond ratings. > Continuing to provide the same types and levels of service has become increasingly difficult with reduced staff and resources. > Health care costs and personnel costs which make up a significant portion of the City’s operating costs continue to rise. The three union contracts, AFSCME, PSEO and IAFF, expired on December 31, 2020 and union negotiations will continue in fiscal year 2021. > The three-year union contracts for AFSCME, PSEO and IAFF bargaining groups, which all expired on December 31, 2020, provided an annual two and one-half percent wage increase during fiscal years 2018 through 2020 for all classifications within the bargaining groups. Contract discussions will continue in 2021 to determine the annual wage increases for the coming years. > To battle the rising cost in health care, in 2015, City employees began the move from a self-insured health plan to a third party administered health plan which allows the City to budget a fixed amount for health care thus eliminating the need to fund any losses incurred by a self-insured health fund. > Any potential reduction in state shared revenue due to the State of Illinois’ poor financial condition may present significant budgetary challenges if the State legislature elects to reduce any of the shared funds toward solving the State’s budget issue. > In March 2020, the novel coronavirus (COVID 19) outbreak was declared a global pandemic. The unemployment rate for the City of Galesburg, for 2020, increased to 8.6 percent. This is a increase from a rate of 5.0 percent a year ago. This compares slightly higher to the state’s average unemployment rate of 8.0 percent. > The City continues to develop a budget based on conservative estimates in revenues. Declining or stagnant revenue growth continues to impact governmental activity revenues and provides significant budget challenges for administration. Although revenue growth will be limited, the 2021 budget will sustain City services for another year. > In 2020, new businesses such as Nature's Treatment, Guacamole Grill, La Cantinita and Lenny's Grill & Subs opened in Galesburg. These new businesses will provide employment and future shopping options for residents along with sales tax and property tax benefits for the City. > In 2021, land for commercial properties continues to be available to develop in the Gale Village subdivision. After the commercial property is developed, the next step of the plan is to develop residential property in the area. City of Galesburg Management's Discussion and Analysis December 31, 2020 (Unaudited) 14 > In 2021, land continues to be available for development in the relatively new residential subdivision near Lincoln Park. The homes will provide more housing opportunities for residents and, also, provide property tax benefits for the City. > In 2021, the City will be in its second year of a 5 X 5 housing program with hopes to make an impact on blighted city buildings and housing. The City's goal is to assist with work on 500 homes over a five-year period that ends in 2023. > In 2021, in Phase IV of the lead service line replacement program will continue, and the City will assist approximately 525 property owners in replacing a portion of lead line water services by utilizing funds from a forgivable loan from the IEPA. AT the end of fiscal year 2020, there are approximately 1,025 active lead service lines remaining in the city. All of these factors were considered in preparing the City of Galesburg’s budget for the 2021 fiscal year. The City will continue to monitor and evaluate the impact of the COVID-19 pandemic, including business disruption, market volatility, and city policies to take steps to mitigate the impact of the pandemic to our citizens and employees. Requests for Information This financial report is designed to provide the City’s citizens, taxpayers, and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report, need additional financial information, contact the Finance Department: Gloria Osborn City of Galesburg 55 West Tompkins Street Galesburg, Illinois 61401 B A S I C F I N A N C I A L S T A T E M E N T S 15 Component Unit Governmental Business-Type Galesburg Activities Activities Total Public Library Assets and Deferred Outflows of Resources Assets Cash and cash equivalents 34,746,780$ 10,824,817$ 45,571,597$ 6,199,260$ Investments 614,467 - 614,467 4,323,855 Receivables (net): Property tax receivable 9,586,710 - 9,586,710 1,576,150 Other taxes 1,714,676 - 1,714,676 - Accrued interest 11,443 2,228 13,671 - Accounts 2,077,404 2,416,208 4,493,612 (92) Loans 2,614,625 - 2,614,625 - Net pension asset 83,417 - 83,417 - Due from other governmental units 2,888,485 - 2,888,485 1,717 Internal balances (351,363) 351,363 - - Inventories 44,111 139,992 184,103 - Prepaid items 701,507 61,960 763,467 41,872 Property held for resale 3,757,977 - 3,757,977 - Bond issuance insurance 21,522 15,473 36,995 - Capital assets: Capital assets not being depreciated 8,143,761 985,434 9,129,195 658,423 Capital assets being depreciated, net of depreciation 71,408,679 33,881,853 105,290,532 872,870 Total assets 138,064,201 48,679,328 186,743,529 13,674,055 Deferred Outflows of Resources Deferred outflows related to pensions 28,925,923 571,621 29,497,544 329,005 Deferred outflows related to OPEB 2,387,346 239,358 2,626,704 3,636 Deferred charge on refunding - 846,568 846,568 - Total deferred outflows of resources 31,313,269 1,657,547 32,970,816 332,641 Total assets and deferred outflows of resources 169,377,470$ 50,336,875$ 219,714,345$ 14,006,696$ City of Galesburg, Illinois Statement of Net Position December 31, 2020 Primary Government 16 Component Unit Governmental Business-Type Galesburg Activities Activities Total Public Library City of Galesburg, Illinois Statement of Net Position December 31, 2020 Primary Government Liabilities, Deferred Inflows of Resources, and Net Position Liabilities Accounts payable 2,282,161$ 1,017,354$ 3,299,515$ 157,863$ Accrued liabilities 613,558 28,536 642,094 26,798 Interest payable 829 19,842 20,671 - Payroll taxes payable - - - 654 Claims payable 60,000 - 60,000 - Due to other governmental units 10,690 1,051,070 1,061,760 28 Deposits - 979,732 979,732 - Unearned revenues 132,589 83 132,672 8,390 Noncurrent liabilities: Due within one year 1,920,592 1,032,918 2,953,510 3,041,337 Due in more than one year 123,587,351 15,618,380 139,205,731 2,590,407 Total liabilities 128,607,770 19,747,915 148,355,685 5,825,477 Deferred Inflows of Resources Property taxes levied for future periods 9,586,710 - 9,586,710 1,576,150 Deferred inflows related to pensions 6,869,497 566,523 7,436,020 326,070 Deferred inflows related to OPEB 1,515,862 151,981 1,667,843 2,309 Total deferred inflows of resources 17,972,069 718,504 18,690,573 1,904,529 Net Position Net investment in capital assets 70,812,000 21,470,231 92,282,231 1,531,293 Restricted for: Motor fuel tax 2,334,991 - 2,334,991 - Economic development 734,117 - 734,117 - Special enforcement 540,423 - 540,423 - Foreign fire 129,130 - 129,130 - Infrastructure improvements 5,887 - 5,887 - TIF expenses 1,429,950 - 1,429,950 - General government 139,925 - 139,925 - Donations 171,544 - 171,544 - Pension benefits 466,847 - 466,847 - Cemetery 608,921 - 608,921 - Public works 536,552 - 536,552 - Town of the City 1,366,611 - 1,366,611 - Donor restricted - Foundation - - - 1,577,710 Unrestricted (56,479,267) 8,400,225 (48,079,042) 3,167,687 Total net position 22,797,631 29,870,456 52,668,087 6,276,690 Total liabilities, deferred inflows of resources and net position 169,377,470$ 50,336,875$ 219,714,345$ 14,006,696$ See notes to financial statements 17 Component Fees, Fines Operating Capital Unit and Charges Grants and Grants and Governmental Business-type Galesburg Functions/Programs Expenses for Services Contributions Contributions Activities Activities Total Public Library Primary Government Governmental activities: General government 11,550,509$ 2,906,591$ 6,468,193$ 289,396$ (1,886,329)$ -$ (1,886,329)$ -$ Economic development 2,089,501 287,559 - - (1,801,942) - (1,801,942) - Public safety 26,287,931 1,132,756 82,279 - (25,072,896) - (25,072,896) - Public works 6,348,081 73,722 19,507 1,202,371 (5,052,481) - (5,052,481) - Culture, education and recreation 4,596,048 642,741 - - (3,953,307) - (3,953,307) - Interest and fiscal charges 337,940 - - - (337,940) - (337,940) - Total governmental activities 51,210,010 5,043,369 6,569,979 1,491,767 (38,104,895) - (38,104,895) - Business type activities: Water 6,431,060 7,203,364 776 - - 773,080 773,080 - Refuse 2,688,662 2,686,297 - - - (2,365) (2,365) - Total business-type activities 9,119,722 9,889,661 776 - - 770,715 770,715 - Total primary government 60,329,732$ 14,933,030$ 6,570,755$ 1,491,767$ (38,104,895) 770,715 (37,334,180) - Component Unit Galesburg Public Library 2,069,438$ 1,191$ 49,344$ -$ - - - (2,018,903) General revenues: Property tax 9,654,393 - 9,654,393 1,554,571 State income and use tax 4,982,939 - 4,982,939 - Sales and home rule taxes 10,024,794 - 10,024,794 - Replacement tax 968,628 - 968,628 40,000 Food and beverage tax 1,463,534 - 1,463,534 - Hotel/motel tax 501,691 - 501,691 - Local utility taxes 2,155,282 - 2,155,282 - City gas tax 634,769 - 634,769 - Other taxes 812,605 - 812,605 - Franchise fees 379,892 - 379,892 - Investment income 437,168 128,670 565,838 351,229 Miscellaneous 455,957 6,605 462,562 131,030 Total general revenues 32,471,652 135,275 32,606,927 2,076,830 Change in net position (5,633,243) 905,990 (4,727,253) 57,927 Net position, beginning 28,430,874 28,964,466 57,395,340 6,218,763 Net position, ending 22,797,631$ 29,870,456$ 52,668,087$ 6,276,690$ City of Galesburg, Illinois Statement of Activities Year Ended December 31, 2020 Primary Government Program Revenues Changes in Net Position Net (Expense) Revenue and See notes to financial statements 18 Nonmajor Total Economic Parks and Public Governmental Governmental General Development Recreation Transportation Funds Funds Assets Cash and cash equivalents 8,709,747$ 4,232,032$ 1,605,285$ 90,530$ 18,640,524$ 33,278,118$ Investments - - 52,685 - 561,782 614,467 Receivables (net): Property taxes 7,657,355 - 224,435 - 1,704,920 9,586,710 Other taxes 1,199,280 244,937 261,548 - 8,911 1,714,676 Accounts 280,830 183,850 1,633 1,069,263 522,906 2,058,482 Accrued interest 1,172 4,776 213 - 5,282 11,443 Loans - 2,614,625 - - - 2,614,625 Due from other governments 1,711,192 - 403,194 - 774,099 2,888,485 Due from other funds 1,185,268 266,377 - 24 91,358 1,543,027 Inventory 32,399 - - 11,712 - 44,111 Prepaid items 348,487 10,399 32,112 21,722 20,001 432,721 Property held for resale - 3,393,165 - - 364,812 3,757,977 Advances to other funds 157,000 604,170 157,000 - 314,000 1,232,170 Total assets 21,282,730$ 11,554,331$ 2,738,105$ 1,193,251$ 23,008,595$ 59,777,012$ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 232,505$ 63,423$ 130,257$ 36,638$ 1,775,625$ 2,238,448$ Accrued liabilities 558,779 2,277 23,128 17,062 11,344 612,590 Due to other governments 9,727 - - - 963 10,690 Due to other funds 3,369 - 88,013 1,173,197 278,448 1,543,027 Advances from other funds - - - - 1,232,170 1,232,170 Unearned revenue 14,232 - 19,784 - 91,655 125,671 Total liabilities 818,612 65,700 261,182 1,226,897 3,390,205 5,762,596 Deferred Inflows of Resources Unavailable revenue 877,631 90,213 221,794 1,065,672 213,173 2,468,483 Property taxes levied for future periods 7,657,355 - 224,435 - 1,704,920 9,586,710 Total deferred inflows of resources 8,534,986 90,213 446,229 1,065,672 1,918,093 12,055,193 Fund Balances (Deficits) Nonspendable 380,886 10,399 32,112 33,434 580,017 1,036,848 Restricted 12,792 734,117 140,714 - 6,548,646 7,436,269 Committed 222,856 6,748,676 14,988 - 3,150,766 10,137,286 Assigned - 3,905,226 1,842,880 - 8,379,028 14,127,134 Unassigned (deficit)11,312,598 - - (1,132,752) (958,160) 9,221,686 Total fund balances (deficits)11,929,132 11,398,418 2,030,694 (1,099,318) 17,700,297 41,959,223 Total liabilities, deferred inflows of resources and fund balances 21,282,730$ 11,554,331$ 2,738,105$ 1,193,251$ 23,008,595$ 59,777,012$ City of Galesburg, Illinois December 31, 2020 Balance Sheet - Governmental Funds Major Funds See notes to financial statements 19 Total Fund Balances - Governmental Funds 41,959,223$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds: Capital assets 122,621,491$ Accumulated depreciation (43,069,051) 79,552,440 The net pension asset does not relate to current financial resources and is not reported in the governmental funds.83,417 Bond issuance insurance does not relate to current financial resources and is not reported in the governmental funds.21,522 Revenues collected after the City's availability period are reported as deferred inflows of resources in governmental funds, however these amounts have been reported as revenues in the Statement of Activities.2,468,483 Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.28,904,809 Deferred outflows of resources related to other postemployement benefits do not relate to current financial resources and are not reported in the governmental funds.2,387,346 Deferred inflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.(6,848,572) Deferred inflows of resources related to other postemployement benefits do not relate to current financial resources and are not reported in the governmental funds.(1,515,862) Some liabilities reported in the Statement of Net Position do not require the use of current financial resources and therefore are not reported as liabilities in governmental funds. These activities consist of: Compensated absences (1,723,540) Accrued interest payable (829) Net pension liability (100,391,584) Net OPEB liability (13,378,556) General obligation bonds payable (9,790,000) Bond premium (191,369) (125,475,878) Internal service funds are reported in the statement of net position as governmental activities.1,260,703 Net Position of Governmental Activities 22,797,631$ City of Galesburg, Illinois Reconciliation of Governmental Funds Balance Sheet to Statement of Net Position December 31, 2020 See notes to financial statements 20 Nonmajor Economic Parks and Public Governmental General Development Recreation Transportation Funds Total Revenues Taxes 12,993,191$ 941,019$ 1,607,211$ -$ 4,464,415$ 20,005,836$ Charges for services 989,621 - 44,299 - 307,346 1,341,266 Intergovernmental 11,471,906 50,400 1,777,354 1,019,604 5,761,589 20,080,853 Licenses and permits 299,889 - - - - 299,889 Fines and fees 322,215 - - - 7,195 329,410 Use of money and property 575,479 95,741 671,553 15,705 442,718 1,801,196 Contributions - - - 87,095 21,000 108,095 Miscellaneous 26,876 - 53,119 - 234,844 314,839 Total revenues 26,679,177 1,087,160 4,153,536 1,122,404 11,239,107 44,281,384 Expenditures Current: General government 3,752,044 - - 2,017,618 2,842,935 8,612,597 Economic development - 462,691 - - 1,114,761 1,577,452 Public safety 17,223,734 - 121,748 - 542,206 17,887,688 Public works 2,259,462 - 502,018 - 1,719,064 4,480,544 Culture and recreation - - 2,992,771 - - 2,992,771 Miscellaneous - 80,579 - - 2,902,727 2,983,306 Debt Service: Principal - - - - 710,000 710,000 Interest and fiscal charges - - - - 361,859 361,859 Capital outlay - - - - 3,832,577 3,832,577 Total expenditures 23,235,240 543,270 3,616,537 2,017,618 14,026,129 43,438,794 Excess (deficiency) of revenues over expenditures 3,443,937 543,890 536,999 (895,214) (2,787,022) 842,590 Other Financing Sources (Uses) Proceeds from the sale of assets 14,526 - - - - 14,526 Transfers in 62 16,609 10,092 273,643 4,634,927 4,935,333 Transfers out (1,634,272) (363,175) (504,149) - (2,433,737) (4,935,333) Total other financing sources (uses)(1,619,684) (346,566) (494,057) 273,643 2,201,190 14,526 Net change in fund balances 1,824,253 197,324 42,942 (621,571) (585,832) 857,116 Fund Balances (Deficits), Beginning 10,104,879 11,201,094 1,987,752 (477,747) 18,286,129 41,102,107 Fund Balances (Deficits), Ending 11,929,132$ 11,398,418$ 2,030,694$ (1,099,318)$ 17,700,297$ 41,959,223$ City of Galesburg, Illinois Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended December 31, 2020 Major Funds See notes to financial statements 21 Net change in total governmental fund balances 857,116$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report purchases of capital assets as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets. Capital expenditures 3,832,577$ Depreciation (3,002,065) Net book value of assets retired (1,195,439) Capital expenditures in excess of depreciation (364,927) Capital assets transferred to the City are recorded as capital contributions in the Statement of Activities, but do not require the use of current financial resources and are therefore not reported in the governmental funds.429,656 Receivables not currently available are reported as revenue when collected or currently available in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements.744,910 Some expenses in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Accrued interest on debt 65 Amortization of bond premiums 23,853 Amortization of bond insurance (2,540) Net pension liability (4,710,491) Net pension asset 83,417 Net OPEB liability (1,151,692) Deferred outflows of resources related to pensions (503,459) Deferred outflows of resources related to OPEB 1,392,771 Deferred inflows of resources related to pensions (3,053,730) Deferred inflows of resources related to OPEB (204,730) Compensated absences (114,746) (8,241,282) Repayment of principal on long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.710,000 Internal service funds are used by management to charge self insurance costs to individual funds. The change in net position of the internal service fund is reported with governmental activities.231,284 Change in net position of governmental activities (5,633,243)$ City of Galesburg, Illinois Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities Year Ended December 31, 2020 See notes to financial statements 22 Governmental Activities Internal Service Water Refuse Total Fund Assets and Deferred Outflows of Resources Assets Current assets: Cash and cash equivalents 10,107,128$ 717,689$ 10,824,817$ 1,468,662$ Receivables (net): Accounts 2,030,183 386,025 2,416,208 18,922 Accrued interest 2,228 - 2,228 - Inventory 139,992 - 139,992 - Prepaid items 56,196 5,764 61,960 268,786 Total current assets 12,335,727 1,109,478 13,445,205 1,756,370 Noncurrent assets: Bond issuance insurance 15,473 - 15,473 - Capital assets not being depreciated 985,434 - 985,434 - Capital assets being depreciated 50,027,811 - 50,027,811 - Less accumulated depreciation (16,145,958) - (16,145,958) - Total noncurrent assets 34,882,760 - 34,882,760 - Total assets 47,218,487 1,109,478 48,327,965 1,756,370 Deferred Outflows of Resources Deferred outflows related to pensions 571,621 - 571,621 21,114 Deferred outflows related to OPEB 237,407 1,951 239,358 - Deferred charge on refunding 846,568 - 846,568 - Total deferred outflows of resources 1,655,596 1,951 1,657,547 21,114 Enterprise Funds City of Galesburg, Illinois Statement of Net Position Proprietary Funds December 31, 2020 See notes to financial statements 23 Governmental Activities Internal Service Water Refuse Total Fund Enterprise Funds City of Galesburg, Illinois Statement of Net Position Proprietary Funds December 31, 2020 Liabilities, Deferred Inflows of Resources, and Net Position Liabilities Current liabilities: Accounts payable 820,543$ 196,811$ 1,017,354$ 43,713$ Accrued liabilities 28,193 343 28,536 968 Claims payable - - - 60,000 Accrued interest payable 19,842 - 19,842 - Deposits 979,732 - 979,732 - Due to other governments 1,051,070 - 1,051,070 - Unearned revenue 83 - 83 6,918 General obligation bonds payable 865,000 - 865,000 - Notes payable 41,406 - 41,406 - Compensated absences 126,426 86 126,512 2,080 Total current liabilities 3,932,295 197,240 4,129,535 113,679 Noncurrent liabilities: General obligation bonds payable 12,923,161 - 12,923,161 - Notes payable 414,057 - 414,057 - Net pension liability 834,215 - 834,215 30,814 Net OPEB liability 1,330,414 10,936 1,341,350 - Compensated absences 105,497 100 105,597 - Total noncurrent liabilities 15,607,344 11,036 15,618,380 30,814 Total liabilities 19,539,639 208,276 19,747,915 144,493 Deferred Inflows of Resources Deferred inflows related to pensions 566,523 - 566,523 20,925 Deferred inflows related to OPEB 150,742 1,239 151,981 - Total deferred inflows of resources 717,265 1,239 718,504 20,925 Net Position Net investment in capital assets 21,470,231 - 21,470,231 - Unrestricted net position 7,146,948 901,914 8,048,862 1,612,066 Total net position 28,617,179$ 901,914$ 29,519,093 1,612,066 Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds 351,363 (351,363) Net position business-type activities 29,870,456$ Net internal service funds reported in the statement of net position as governmental activities 1,260,703$ See notes to financial statements 24 Governmental Activities Internal Service Water Refuse Total Fund Operating Revenues Charges for services 7,203,364$ 2,686,297$ 9,889,661$ 787,104$ Miscellaneous 6,605 - 6,605 64,949 Total operating revenues 7,209,969 2,686,297 9,896,266 852,053 Operating Expenses Personnel services 2,064,983 34,200 2,099,183 106,600 Contractual services 1,728,362 2,649,299 4,377,661 465,586 Commodities 598,488 40 598,528 346 Insurance claims and changes in reserves - - - 25,477 Depreciation 990,094 - 990,094 - Other charges 601,955 5,123 607,078 - Total operating expenses 5,983,882 2,688,662 8,672,544 598,009 Operating income 1,226,087 (2,365) 1,223,722 254,044 Nonoperating Revenues (Expenses) Investment earnings 124,898 3,772 128,670 13,068 Interest expense (487,927) - (487,927) - Intergovernmental 776 - 776 - Gain on sale of assets 4,921 - 4,921 - Total nonoperating revenues (expenses)(357,332) 3,772 (353,560) 13,068 Change in net position 868,755 1,407 870,162 267,112 Net Position, Beginning 27,748,424 900,507 28,648,931 1,344,954 Net Position, Ending 28,617,179$ 901,914$ 29,519,093$ 1,612,066$ Change in net position 870,162$ Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 35,828 Change in net position of business-type activities 905,990$ Enterprise Funds City of Galesburg, Illinois Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds Year Ended December 31, 2020 See notes to financial statements 25 Governmental Activities Internal Service Water Refuse Total Fund Cash Flows From Operating Activities Cash received from customers and users 6,923,574$ 2,834,841$ 9,758,415$ 96,626$ Cash received from interfund service - - - 758,829 Cash payments for goods and services (2,162,681) (2,675,310) (4,837,991) (693,759) Cash payments to employees (2,095,193) (39,174) (2,134,367) (111,421) Net cash provided/(used) by operating activities 2,665,700 120,357 2,786,057 50,275 Cash Flows From Noncapital Financing Activities Intergovernmental revenues 776 - 776 - Net cash provided/(used) in noncapital financing activities 776 - 776 - Cash Flows From Capital and Related Financing Activities Purchase of capital assets (2,051,888) - (2,051,888) - Interest paid on debt (494,345) - (494,345) - Principal payments on bonds (845,000) - (845,000) - Principal payments on notes (41,406) - (41,406) - Proceeds from sale of capital assets 4,921 - 4,921 - Net cash used in capital and related financing activities (3,427,718) - (3,427,718) - Cash Flows From Investing Activities Proceeds from sale and maturity of investments 1,355,143 - 1,355,143 - Income and dividends received 143,223 3,772 146,995 13,950 Net cash provided by (used in) investing activities 1,498,366 3,772 1,502,138 13,950 Net increase (decrease) in cash 737,124 124,129 861,253 64,225 Cash and Cash Equivalents, Beginning 9,370,004 593,560 9,963,564 1,404,437 Cash and Cash Equivalents, Ending 10,107,128$ 717,689$ 10,824,817$ 1,468,662$ City of Galesburg, Illinois Statement of Cash Flows Proprietary Funds Year Ended December 31, 2020 Business-Type Activities - Enterprise Funds See notes to financial statements 26 Governmental Activities Internal Service Water Refuse Total Fund City of Galesburg, Illinois Statement of Cash Flows Proprietary Funds Year Ended December 31, 2020 Business-Type Activities - Enterprise Funds Reconciliation of Operating Income to net Cash Provided By Operating Activities: Operating income (loss)1,226,087$ (2,365)$ 1,223,722$ 254,044$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 990,094 - 990,094 - Change in operating assets and liabilities: Accounts receivable (317,077) (51,456) (368,533) (3,516) Due from other governments 30,599 200,000 230,599 - Inventory (3,728) - (3,728) - Prepaid items (14,220) (5,054) (19,274) (108,363) Bond issuance insurance 2,069 - 2,069 - Deferred outflows, pension 794,998 - 794,998 23,604 Deferred outflows, OPEB (139,019) (853) (139,872) - Accounts payable 480,426 (15,794) 464,632 16,013 Deposits payable 35,007 - 35,007 - Accrued salaries (46,573) (685) (47,258) (1,780) Due to other governments 266,570 - 266,570 - Claims payable - - - (110,000) Compensated absences 45,892 (667) 45,225 (5,476) Net pension liability (1,188,089) - (1,188,089) (35,358) Net OPEB liability 120,871 (2,560) 118,311 - Deferred inflows, pension 360,671 - 360,671 14,189 Deferred inflows, OPEB 21,039 (209) 20,830 - Unearned revenue 83 - 83 6,918 Total adjustments 1,439,613 122,722 1,562,335 (203,769) Net Cash Provided By Operating Activities 2,665,700$ 120,357$ 2,786,057$ 50,275$ Noncash Capital and Related Financing Activities None See notes to financial statements 27 Pension Trust Funds Assets Cash and cash equivalents 7,039,385$ Investments: U.S. government and agency securities 7,524,034 Mutual funds 12,652,965 Common and preferred stock 4,995,061 Insurance contracts and annuities 20,223,496 Municipal bonds 125,303 Corporate bonds 8,622,951 Receivables: Accrued interest 62,744 Total assets 61,245,939 Liabilities Accounts payable 536,587 Total liabilities 536,587 Net Position Restricted for OPEB 1,643,206 Restricted for retirement benefits 59,066,146 Total net position 60,709,352$ City of Galesburg, Illinois Statement of Fiduciary Net Position Fiduciary Funds December 31, 2020 See notes to financial statements 28 Pension Trust Funds Additions Contributions: Employer 6,094,356$ Plan member deposits 736,912 Total contributions 6,831,268 Investment earnings: Net appreciation in fair value of investments 4,734,686 Interest 615,183 Total investment earnings 5,349,869 Less investment expense 94,791 Net investment earnings 5,255,078 Miscellaneous: Other income 448,770 Total additions 12,535,116 Deductions Benefits 7,185,587 Administrative expenses 49,692 Total deductions 7,235,279 Change in net position 5,299,837 Net Position, Beginning 55,409,515 Net Position, Ending 60,709,352$ Year Ended December 31, 2020 City of Galesburg, Illinois Statement of Changes in Fiduciary Net Position Fiduciary Funds City of Galesburg Index to Notes to Financial Statements December 31, 2020 Page 1.Summary of Significant Accounting Policies 30 Reporting Entity 30 Government-W ide and Fund Financial Statements 31 Measurement Focus, Basis of Accounting and Financial Statement Presentation 34 Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity 35 Deposits and Investments 35 Receivables 38 Inventories and Prepaid Items 39 Capital Assets 39 Deferred Outflows of Resources 40 Compensated Absences 40 Long-Term Obligations 40 Deferred Inflows of Resources 40 Equity Classifications 41 Postemployment Benefits Other Than Pensions (OPEB)42 Property Held for Resale 42 2.Stewardship, Compliance and Accountability 42 Deficit Balances 42 3.Detailed Notes on All Funds 43 Deposits and Investments 43 Receivables 48 Capital Assets 50 Interfund Receivables/Payables, Advances and Transfers 51 Long-Term Obligations 53 Net Position/Fund Balances 56 Component Unit 58 4.Other Information 61 Employees' Retirement System 61 Risk Management 80 Commitments and Contingencies 81 Other Postemployment Benefits 81 Tax Increment Financing District 85 Tax Abatement 85 Effect of New Accounting Standards on Current-Period Financial Statements 87 29 City of Galesburg Notes to Financial Statements December 31, 2020 1.Summary of Significant Accounting Policies The City of Galesburg, Illinois (the City) was incorporated in 1857. The City is a home-rule municipality, under the 1970 Illinois Constitution, located in Knox County, Illinois. The City operates under a Mayor- Council form of government and provides the following services as authorized by its charter: public safety, streets, refuse collection, recreation and cultural events, community development and general administrative services. The accounting policies of the City of Galesburg, Illinois conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The accepted standard- setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). Reporting Entity This report includes all of the funds of the City. The reporting entity for the City consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The primary government is financially accountable if (1) it appoints a voting majority of the organization's governing body and it is able to impose its will on that organization, (2) it appoints a voting majority of the organization's governing body and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government, (3) the organization is fiscally dependent on and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. Certain legally separate, tax exempt organizations should also be reported as a component unit if all of the following criteria are met: (1) the economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units or its constituents; (2) the primary government or its component units, is entitled to, or has the ability to access, a majority of the economic resources received or held by the separate organization; and (3) the economic resources received or held by an individual organization that the primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to the primary government. Component units are reported using one of three methods, discrete presentation, blended or fiduciary. Generally, component units should be discretely presented in a separate column in the financial statements. A component unit should be reported as part of the primary government using the blending method if it meets any one of the following criteria: (1) the primary government and the component unit have substantively the same governing body and a financial benefit or burden relationship exists, (2) the primary government and the component unit have substantively the same governing body and management of the primary government has operational responsibility for the component unit, (3) the component unit serves or benefits, exclusively or almost exclusively, the primary government rather than its citizens or (4) the total debt of the component unit will be paid entirely or almost entirely from resources of the primary government. Blended Component Unit The Town of the City of Galesburg serves all the citizens of the City and is governed by a board comprised of the City's elected council. Although the Town is a legally separate entity, it is, in substance, part of the primary government's operations and a financial benefit or burden relationship exists with the City. Therefore data from the Town is blended with the financial data of the City. Separately issued financial statements of the Town may be obtained from the the administrative offices at City Hall, Galesburg, Illinois. 30 City of Galesburg Notes to Financial Statements December 31, 2020 Discretely Presented Component Unit Galesburg Public Library The government-wide financial statements include the Galesburg Public Library (Library) as a component unit. The Library is a legally separate organization. The board of the Library is appointed by the City's elected council. Statutes provide for circumstances whereby the City can impose its will on the Library, and also create a potential financial benefit to or burden on the City. The Library has one fund and is presented as a governmental fund type. The Galesburg Public Library Foundation (Foundation), a component unit of the Library, receives donations and provides funds to the Library and promotes its charitable, educational and cultural purposes. As a component unit, the Library's financial statements have been presented as a discrete column in the financial statements. The information presented is for the fiscal year ended December 31, 2020. The Library does not issue separate financial statements.Complete financial statements of the Foundation can be obtained from the administrative offices at City Hall, Galesburg, Illinois. Fiduciary Component Units The Police Pension Employees Retirement System (PPERS) is established for the City's police employees. PPERS functions for the benefit of these employees and is governed by a five- member pension board. Two members appointed by the City’s President, one pension beneficiary elected by the membership and two police employees elected by the membership constitute the pension board. The City and the PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations. A municipality is considered to have a financial burden if it is legally obligated or has otherwise assumed the obligation to make contributions to the pension plan. The State of Illinois is authorized to establish benefit levels and the City is authorized to approve the actuarial assumptions used in the determination of contribution levels. PPERS is reported as a fiduciary component unit pension trust fund and the data for the pension is included in the government's fiduciary fund financial statements as a pension trust fund. No separate annual financial report is issued for the PPERS. The Firefighters’ Pension Employees Retirement System (FPERS) is established for the City's firefighters. FPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the City’s President, one pension beneficiary elected by the membership; and two fire employees elected by the membership constitute the pension board. The City and the FPERS participants are obligated to fund all FPERS costs based upon actuarial valuations. A municipality is considered to have a financial burden if it is legally obligated or has otherwise assumed the obligation to make contributions to the pension plan. The State of Illinois is authorized to establish benefit levels and the City is authorized to approve the actuarial assumptions used in the determination of contribution levels. FPERS is reported as a fiduciary component unit and the data for the pension is included in the government's fiduciary fund financial statements as a pension trust fund. No separate annual financial report is issued for the FPERS. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. 31 City of Galesburg Notes to Financial Statements December 31, 2020 The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The City does not allocate indirect expenses to functions in the statement of activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the City are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self- balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues and expenditures/expenses. Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type and b. The same element of the individual governmental or enterprise fund that met the 10 percent test is at least 5 percent of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or enterprise fund that the City believes is particularly important to financial statement users may be reported as a major fund. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The City reports the following major governmental funds: General Fund General Fund accounts for the City's primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. Special Revenue Funds Economic Development Fund is used to account for the economic development loans and assistance made to local businesses. Revenue is collected from the home rule tax that is distributed by the State of Illinois. Parks and Recreation Fund is used to account for operations of the City's parks and recreation programs. Revenue is collected from multiple sources including property taxes, other taxes and intergovernmental payments from the State of Illinois restricted, committed or assigned for culture and recreation purposes. 32 City of Galesburg Notes to Financial Statements December 31, 2020 Public Transportation Fund is used to account for operations associated with the City's Handivan program and the collection and use of public transportation operating assistance grants associated with the City's transit bus system. Enterprise Funds The City reports the following major enterprise funds: Water Fund accounts for operations of providing a safe and adequate water supply for fire protection, domestic and industrial use. Refuse Fund accounts for operations and maintenance of the refuse collection and recycling system. The City reports the following nonmajor governmental funds: Special Revenue Funds Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). City Gas Tax Motor Fuel Tax Federal Special Enforcement State Special Enforcement Foreign Fire Grants Airport Property Redevelopment Public Transportation Projects Town of the City of Galesburg Stormwater Utility 911 Communication Debt Service Funds Debt Service Funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for the payment of general long-term debt principal, interest and related costs. 2013A GO Bonds Business District 2011C Business Park 2016 GO Bond Debt Service Capital Projects Funds Capital Projects Funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. 2013A Business District TIF 3 Regency Capital Project Building Repair and Maintenance TIF Downtown TIF East Main Computer Replacement Vehicle Replacement Players Fields Capital Planning TIF IV TIF V Utility Tax Capital Projects 2016 GO Capital Improvement 33 City of Galesburg Notes to Financial Statements December 31, 2020 Permanent Funds Permanent Funds are used to account for and report resources that are restricted to the extent that only earnings and not principal, may be used for purposes that support the reporting government's programs, that is, for the benefit of the government or its citizenry. Linwood Cemetery East Linwood Cemetery In addition, the City reports the following fund types: Internal Service Fund Internal Service Fund is used to account for and report the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governmental units, on a cost-reimbursement basis. Risk Management Pension and Other Employee Benefit Trust Funds Pension and Other Employee Benefit Trust Funds are used to account for and report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans and the other postemployment benefit plan. Police Pension Firefighters' Pension OPEB Trust Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Interfund services provided and used are not eliminated from the government-wide financial statements. 34 City of Galesburg Notes to Financial Statements December 31, 2020 Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Property taxes are recorded in the year levied as receivables and deferred inflows. They are recognized as revenues in the succeeding year when services financed by the levy are being provided. Intergovernmental aids and grants are recognized as revenues in the period the City is entitled the resources and the amounts are available. Amounts owed to the City which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, licenses and permits and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Proprietary and Fiduciary Funds Proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Water Fund and Refuse Fund are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity Deposits and Investments For purposes of the statement of cash flows, the City considers all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. 35 City of Galesburg Notes to Financial Statements December 31, 2020 Illinois Statutes authorize the City to make deposits/investments in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreement to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services and the Illinois Funds Investment Pool. Pension funds may also invest in certain non-U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political subdivisions and the Illinois insurance company general and separate accounts, mutual funds meeting certain requirements, equity securities and corporate bonds meeting certain requirements. Pension funds with net assets in excess of $10,000,000 and an appointed investment advisor may invest an additional portion of its assets in common and preferred stocks and mutual funds, that meet certain requirements. The police pension fund’s investment policy allows investments in all of the above listed accounts, but does exclude any repurchase agreements. The firefighters pension fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. The police pension fund's investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Fixed income 45% 0.70% - 1.70% Equities 50 2.40 - 8.00 Cash and cash equivalents 5 0.50 Illinois Compiled Statues (ILCS) limit the police pension fund's investments in equities, mutual funds and variable annuities to 65 percent. Securities in any one company should not exceed 5 percent of the total fund. The police pension fund's investment policy does not include formalized long-term expected real rates of return by asset class. The police pension fund uses the actuarial assumption identified above for each asset class, which is determined by the pension plan's actuary and based on an arithmetic average. The firefighters' pension fund's investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Fixed income 45 % 4.40 % Equities 53 8.70 Cash and cash equivalents 2 1.10 Illinois Compiled Statues (ILCS) limit the firefighters' pension fund's investments in equities, mutual funds and variable annuities to 65 percent. Securities in any one company should not exceed 5 percent of the total fund. 36 City of Galesburg Notes to Financial Statements December 31, 2020 The firefighters' pension fund's investment policy does not include formalized long-term expected real rates of return by asset class. The firefighters' pension fund uses the actuarial assumption identified above for each asset class, which is determined by the pension plan's actuary and based on an arithmetic average. The City has adopted an investment policy. That policy follows the state statute for allowable investments. Interest Rate Risk The City's investment policy minimizes the risk the fair value of fixed income securities in the portfolio will fall due to changes in the general interest rates by structuring the investment portfolio so that fixed income securities mature to meet cash requirements for on-going operations and by investing operating funds primarily in shorter-term fixed income securities. Per the City's investment policy, the maximum maturity for City investments shall be ten (10) years with the average maturity of the total portfolio not exceeding five (5) years. The Police and Firefighters' Pensions investment policies abide by the same guidelines as the City's investment policy. Credit Risk The City's investment policy mitigates credit risk by limiting investments to the safest types of securities, prequalifying the financial institutions, broker/dealers and advisors with which the City will do business and diversifying the investment portfolio so that potential losses on individual securities will be minimized. The Police Pension Fund and Firefighters' Pension Fund investment policies limit investments to those authorized by state statutes and applicable rules and regulations governing investments for the pension funds. To avoid unreasonable risk, diversification of investments is required, including equity allocation. Concentration of Credit Risk The City's investment policy seeks diversification to reduce overall portfolio risk while attaining market rates of return to enable the City to meet all anticipated cash requirements. The City places no limit on the amount the City may invest in one issuer. The Police Pension Fund and Firefighters' Pension Fund investment policies limits the amount available for investment in publicly traded common stocks with no more than 5 percent of investment assets of the pension fund in any one company stock. The funds avoid a concentration of credit risk by diversifying its investments by security type and institution. Custodial Credit Risk, Deposits The City's investment policy limits the exposure to deposit custodial credit risk by requiring all deposits in excess of FDIC insurable limits to be secured with collateralization pledged by the applicable financial institution to the extent of 100 percent of the value of the deposit. The Police Pension Fund's investment policy requires perfect collateralization of all deposits in excess of FDIC insurable limits to the extent of 110 percent and evidenced by an approved written agreement. The Firefighters' Pension Fund abides by the requirements of the City's investment policy. 37 City of Galesburg Notes to Financial Statements December 31, 2020 Custodial Credit Risk, Investments The City's investment policy requires that all trades where applicable will be executed by delivery vs. payment to ensure the fixed income securities are deposited in eligible financial institutions prior to the release of funds. All fixed income securities shall be perfected in the name or for the account of the City and shall be held by a third-party custodian as evidenced by safekeeping receipts. The Police Pension Fund and Firefighters' Pension Fund investment policies allow the Pension Boards to register investments of the funds in the name of the pension funds, in the nominee name of a bank or trust company authorized to conduct a trust business in Illinois, or in the nominee name of the Illinois Public Treasurer's Investment Pool. The assets of the funds and ownership of the investments shall be protected through third-party custodial safekeeping. Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. Fair values are based on methods and inputs as outlined in Note 3. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment income on commingled investments of municipal accounting funds is allocated based on average balances. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price, the price for which the investments could be sold. See Note 3 for further information. Receivables Property taxes for levy year 2020 attaches as an enforceable lien on January 1, 2020, on property values assessed as of the same date. Taxes are levied by December following the lien date (by passage of a Tax Levy Ordinance). The 2020 tax levy, which attached as an enforceable lien on the property as of January 1, 2020, was levied in December 2020. Tax bills for levy year 2020 are prepared by the Knox County Treasurer and issued on or about May 1, 2021 and August 1, 2021 and are payable in two installments, on or about June 1, 2021 and September 1, 2021 or within 30 days of the tax bills being issued. The County collects such taxes and remits them periodically. The 2020 property tax levy is recognized as a receivable and deferred inflows in fiscal 2020, net the allowance for uncollectible. As the taxes become available to finance current expenditures, they are recognized as revenues. At December 31, 2020, the property taxes receivable and related deferred inflows consisted of the estimated amount collectible from the 2020 levy. During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as internal balances. 38 City of Galesburg Notes to Financial Statements December 31, 2020 In the governmental fund financial statements, advances to other funds are offset equally by a nonspendable fund balance account which indicates that they do not constitute expendable available financial resources and, therefore, are not available for appropriation or by a restricted fund balance account, if the funds will ultimately be restricted when the advance is repaid. Inventories and Prepaid Items Governmental fund inventories, if material, are recorded at cost based on the FIFO method using the consumption method of accounting. Proprietary fund inventories are generally used for construction and/or for operation and maintenance work. They are not for resale. They are valued at cost based on weighted average and charged to construction and/or operation and maintenance expense when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Capital Assets Government-Wide Statements Capital assets, which include property, plant and equipment, are reported in the government- wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $50,000 for building improvements, land improvements, infrastructure and $25,000 for machinery and equipment and an estimated useful life in excess of 5 years. All capital assets are valued at historical cost or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated acquisition value at the date of donation. Donated capital assets received in a concession arrangement are recorded at acquisition value. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net position. Depreciation is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows: Buildings and improvements 8-50 Years Land Improvements 10-50 Years Machinery and Equipment 3-30 Years Infrastructure 20-100 Years The City's collection of works of art, library books and other similar assets are not capitalized. These collections are unencumbered, held for public exhibition and education, protected, cared for and preserved and subject to City policy that requires proceeds from the sale of these items to be used to acquire other collection items. Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. 39 City of Galesburg Notes to Financial Statements December 31, 2020 Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net position/fund balance that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. A deferred charge on refunding arises from the advance refunding of debt. The difference between the cost of the securities placed in trust for future payments of the refunded debt and the net carrying value of that debt is deferred and amortized as a component of interest expense over the shorter of the term of the refunding issue or the original term of the refunded debt. The unamortized amount is reported as a deferred outflow of resources in the government-wide and proprietary fund financial statements. Compensated Absences Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only benefits considered to be vested are disclosed in these statements. All vested vacation and sick leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements and are payable with expendable resources. Payments for vacation and sick leave will be made at rates in effect when the benefits are used. Accumulated vacation and sick leave liabilities at December 31, 2020, are determined on the basis of current salary rates and include salary related payments. Long-Term Obligations All long-term obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term obligations consist primarily of notes and bonds payable, unamortized bond premium, net pension liabilities, net OPEB liabilities and accrued compensated absences. Long-term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide statements. For the government-wide statements and proprietary fund statements, bond premiums and discounts are amortized over the life of the issue using the effective interest method. The balance at year end is shown as an increase or decrease in the liability section of the statement of net position. Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net position/fund balance that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. 40 City of Galesburg Notes to Financial Statements December 31, 2020 Equity Classifications Government-Wide Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances (excluding unspent debt proceeds) of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. b. Restricted net position - Consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. c. Unrestricted net position - All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Fund Statements Governmental fund balances are displayed as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (ordinance) of the City Council. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the City Council that originally created the commitment. d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that do not meet the criteria to be classified as restricted or committed. The Council may take official action to assign amounts or delegate responsibility to another party through the budgetary process. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those purposes. Proprietary fund equity is classified the same as in the government-wide statements. 41 City of Galesburg Notes to Financial Statements December 31, 2020 The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. To maintain the City's ability to provide services during emergencies and unexpected declines in the economy the City will maintain a General Fund, fund balance of 16 weeks, or approximately 30 percent of operating expenditures. The fund balance shall be exclusive of all other reserves and contingencies and shall be reported as unassigned. See Note 3 for further information. Fiduciary fund net position is classified as restricted for pool participants, individuals, organizations and other governments on the statement of fiduciary net position. Various donor restrictions apply, including authorizing and spending trust income and the City believes it is in compliance with all significant restrictions. Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense, information about the fiduciary net position of the City OPEB Plan and additions to/deductions from the City OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the City OPEB Plan. For this purpose, the City OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost. Property Held for Resale The City's land held for resale includes land that is being held for sale for future development of the City. The assets are valued at the lower of cost or market. 2.Stewardship, Compliance and Accountability Deficit Balances Generally accepted accounting principles require disclosure of individual funds that have deficit balances at year end. As of December 31, 2020, the following individual funds held a deficit balance: Fund Am ount Reason Public Transportation $(1,099,318)Operating expenses exceeded available revenues Grants (101,106)Operating expenditures exceeded available revenues 2011C Business Park (200)Prior operating expenditures exceeded available revenues 2013A GO Bonds Business District (279,126)Operating expenditures exceeded available revenues Utility Tax Capital Projects (137,146)Prior operating expenditures exceeded available revenues TIF 3 Regency Capital Project (440,582)Prior year operating expenditures exceeded available revenues 42 City of Galesburg Notes to Financial Statements December 31, 2020 These deficits are anticipated to be funded with future tax or grant revenues. TIF district deficits are anticipated to be funded with future incremental taxes levied over the life of the districts, which is 27 years for the districts created before October 1, 1995 and 23 years for districts created thereafter through September 30, 2004. Beginning October 1, 2004, the life of new districts varies by type of district (20-27 years) and may be extended in some cases. 3.Detailed Notes on All Funds Deposits and Investments The City's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Deposits $31,112,304 $31,026,430 Custodial credit risk - deposits Money market mutual funds, bond funds 290,875 290,875 Credit risk, interest rate risk U.S. Agency obligations (implicitly guaranteed)4,008,886 4,008,886 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk U.S. Agency obligations (explicitly guaranteed)309,393 309,393 Custodial credit risk - investments, interest rate risk U.S. Treasury obligations 3,258,224 3,258,224 Custodial credit risk - investments, interest rate risk Mutual funds 12,922,549 12,922,549 N/A Insurance contracts and annuities 20,223,496 20,223,496 Credit risk, concentration of credit risk Common and preferred stock 4,995,061 4,995,061 Custodial credit risk - investments, concentration of credit risk Municipal bonds 125,303 125,303 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Corporate bonds 8,622,951 8,622,951 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Illinois Funds 15,352,327 15,352,327 Credit risk Illinois Trusts 6,143,261 6,143,261 Credit risk Petty cash 4,629 -N/A Total deposits and investments $107,369,259 $107,278,756 43 City of Galesburg Notes to Financial Statements December 31, 2020 Reconciliation to financial statements Per statement of net position Cash and cash equivalents $45,571,597 Investments 614,467 Per statement of fiduciary net position, fiduciary funds Cash and cash equivalents 7,039,385 U.S. government and agency securities 7,524,034 Mutual funds 12,652,965 Common and preferred stock 4,995,061 Insurance contracts and annuities 20,223,496 Municipal bonds 125,303 Corporate bonds 8,622,951 Total deposits and investments $107,369,259 Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest- bearing and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. 44 City of Galesburg Notes to Financial Statements December 31, 2020 The City utilized the fair market valuation method for recurring fair value measurements for both Level 1 and Level 2 investments. As of December 31, 2020, investments were measured using valuation inputs as follows: City December 31, 2020 Investment Type Level 1 Level 2 Level 3 Total U.S. Treasury obligations $-$52,469 $-$52,469 Mutual funds, bond funds 290,875 --290,875 Mutual funds 269,584 --269,584 Total $560,459 $52,469 $-$612,928 Police Pension Fund December 31, 2020 Investment Type Level 1 Level 2 Level 3 Total U.S. Treasury obligations $-$1,349,062 $-$1,349,062 U.S. Agency obligations -2,982,623 -2,982,623 Corporate bonds -3,959,101 -3,959,101 Insurance contracts and annuities --19,941,424 19,941,424 Total $-$8,290,786 $19,941,424 $28,232,210 Firefighters' Pension Fund December 31, 2020 Investment Type Level 1 Level 2 Level 3 Total U.S. Treasury obligations $-$1,856,693 $-$1,856,693 U.S. Agency obligations -1,335,656 -1,335,656 Municipal bonds -125,303 -125,303 Corporate bonds -4,663,850 -4,663,850 Stocks 4,995,061 --4,995,061 Mutual funds 11,009,759 --11,009,759 Insurance contracts and annuities --282,072 282,072 Total $16,004,820 $7,981,502 $282,072 $24,268,394 OPEB Trust Fund December 31, 2020 Investment Type Level 1 Level 2 Level 3 Total Mutual funds $1,643,206 $-$-$1,643,206 Total $1,643,206 $-$-$1,643,206 45 City of Galesburg Notes to Financial Statements December 31, 2020 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the City's deposits may not be returned to the City. The City does not have any deposits exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. As of December 31, 2020, investments were rated as follows: City Investment Type Standard & Poors Moody's Investors Services Illinois Funds AAAm N/R Illinois Trust AAAm N/R Municipal bonds N/R A1 Money market mutual funds, bond funds AAAm Aaa-m1 Police Pension Fund Investment Type Standard & Poors Moody's Investors Services Illinois Funds AAAm N/R U.S. Agency obligations (implicitly guaranteed)AA+Aaa Corporate bonds A - AA+A3 - Aaa Insurance contracts and annuities N/R N/R Firefighters' Pension Fund Investment Type Standard & Poors Moody's Investors Services U.S. Agency obligations (implicitly guaranteed)AA+Aaa Corporate bonds BBB- - AAA A2 - Aa3 Municipal bonds A- AAA Aa3 - Aaa Insurance contracts and annuities N/R N/R Money market mutual funds, bond funds AAAm Aaa-m1 46 City of Galesburg Notes to Financial Statements December 31, 2020 Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At December 31, 2020, the Police Pension Fund's held the following investments in excess of 5 percent of the total Fund's investment portfolio: Issuer Investment Type Percentage of Portfolio Venerable Insurance Contract %14.53 Transamerica Insurance Contract 13.38 Ohio National Insurance Contract 11.29 Delaware Life Insurance Contract 10.87 Prudential Insurance Contract 11.30 Jackson National Insurance Contract 8.85 Nationwide Insurance Contract 7.77 Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. As of December 31, 2020, investments were as follows: City Maturity (In Months) Investment Type Fair Value Less than 1 1 - 5 U.S. Treasury obligations $52,469 $52,469 $- Money market mutual funds, bond funds 290,875 290,875 - Total $343,344 $343,344 $- Police Pension Fund Maturity (In Years) Investment Type Fair Value Less than 1 1 - 5 6 - 10 Greater than 10 U.S. Treasury obligations $1,349,062 $-$275,941 $598,431 $474,690 U.S. Agency obligations 2,982,623 -1,500,035 989,113 493,475 Corporate bonds 3,959,101 -2,114,551 1,844,550 - Total $8,290,786 $-$3,890,527 $3,432,094 $968,165 47 City of Galesburg Notes to Financial Statements December 31, 2020 Firefighters' Pension Fund Maturity (In Years) Investment Type Fair Value Less than 1 1 - 5 6 - 10 Greater than 10 U.S. Treasury obligations $1,856,693 $-$1,024,409 $832,284 $- U.S. Agency obligations 1,335,656 14,732 237,741 378,566 704,617 Municipal bonds 125,303 20,000 -51,863 53,441 Corporate bonds 4,663,850 882,349 1,856,741 1,827,145 97,614 Total $7,981,502 $917,081 $3,118,891 $3,089,858 $855,672 Money-Weighted Rate of Return Police Pension Fund For the year ended December 31, 2020, the annual money-weighted rate of return on the Police Pension plan investments, net of pension plan investment expense, was 8.91 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Firefighters' Pension Fund For the year ended December 31, 2020, the annual money-weighted rate of return on the Firefighters' Pension plan investments, net of pension plan investment expense, was 11.59 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. See Note 1 for further information on deposit and investment policies. Receivables Receivables as of year end for the government's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: General Fund Economic Development Parks and Recreation Nonmajor Total Other Taxes Receivable: Home rule tax $587,848 $244,937 $146,962 $-$979,747 Food and beverage tax 112,753 -12,493 -125,246 Hotel/motel tax --31,627 -31,627 Auto rental tax 3,057 ---3,057 Local use tax 384,153 -70,466 -454,619 Cannabis sales tax 91,023 ---91,023 Video gaming tax 20,446 ---20,446 Business district tax ---8,911 8,911 Total $1,199,280 $244,937 $261,548 $8,911 $1,714,676 48 City of Galesburg Notes to Financial Statements December 31, 2020 General Parks and Recreation Nonmajor Total Due From Other Governments: Replacement tax $159,041 $-$-$159,041 Sales tax 1,143,018 381,006 -1,524,024 State income tax 319,171 22,188 -341,359 Due from State of Illinois 85,231 -530,772 616,003 Other --237,327 237,327 Due from other agencies 4,731 -6,000 10,731 Total $1,711,192 $403,194 $774,099 $2,888,485 All of the receivables on the balance sheet, except for the loans receivable noted below, are expected to be collected within one year. As of December 31, 2020, the City had loans receivable in the amount of $2,614,625 related to thirteen economic development loans issued to local businesses from 2010 through 2020. Monthly installments range from $202 to $3,065 with interest rates from 2.00 percent to 3.00 percent. Final payments are due from February 2021 to August 2028. Governmental funds report unavailable or unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Property taxes levied for the subsequent year are not earned and cannot be used to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of unavailable revenue and unearned revenue reported in the governmental funds were as follows: Unearned Unavailable Property taxes levied for future periods $9,586,710 $- Sales tax -551,816 Local use tax -191,526 Telecommunications tax -29,359 Auto rental tax -1,006 Home rule sales tax -360,851 Grants -1,096,158 Municipal cannabis use tax -31,826 Business district -2,824 Food and beverage -260 Transnational organized crime reimbursement -2,353 County reimbursement 550 -20,641 Other 125,671 179,863 Total unearned/unavailable revenue for governmental funds $9,712,381 $2,468,483 Unearned revenue included in liabilities $125,671 Unearned revenue included in deferred inflows 9,586,710 Total unearned revenue for governmental funds $9,712,381 49 City of Galesburg Notes to Financial Statements December 31, 2020 Capital Assets Capital asset activity for the year ended December 31, 2020, was as follows: Beginning Balance Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated: Land $6,280,520 $37,707 $-$6,318,227 Construction in progress 3,332,117 1,582,657 3,089,240 1,825,534 Total capital assets not being depreciated 9,612,637 1,620,364 3,089,240 8,143,761 Capital assets being depreciated: Land improvements 7,102,616 407,057 -7,509,673 Buildings and improvements 18,493,214 204,699 -18,697,913 Machinery and equipment 13,269,981 1,081,374 358,480 13,992,875 Infrastructure 71,422,128 2,855,141 -74,277,269 Total capital assets being depreciated 110,287,939 4,548,271 358,480 114,477,730 Total capital assets 119,900,576 6,168,635 3,447,720 122,621,491 Less accumulated depreciation for: Land improvements (5,125,093)(220,910)-(5,346,003) Buildings and improvements (8,941,290)(395,193)-(9,336,483) Machinery and equipment (7,369,453)(885,426)345,879 (7,909,000) Infrastructure (18,977,029)(1,500,536)-(20,477,565) Total accumulated depreciation (40,412,865)(3,002,065)345,879 (43,069,051) Net capital assets being depreciated 69,875,074 1,546,206 12,601 71,408,679 Total governmental activities capital assets, net of accumulated depreciation $79,487,711 $3,166,570 $3,101,841 $79,552,440 Depreciation expense was charged to functions as follows: Governmental Activities General Government $376,674 Economic Development 85,965 Public W orks 1,849,730 Public Safety 312,483 Culture and Recreation 377,213 Total governmental activities depreciation expense $3,002,065 50 City of Galesburg Notes to Financial Statements December 31, 2020 Beginning Balance Additions Deletions Ending Balance Business-Type Activities Capital assets not being depreciated: Land $693,913 $-$-$693,913 Construction in progress 715,216 291,521 715,216 291,521 Total capital assets not being depreciated 1,409,129 291,521 715,216 985,434 Capital assets being depreciated: Land improvements 66,666 --66,666 Buildings and improvements 22,276,119 2,136,712 -24,412,831 Machinery and equipment 4,327,700 61,046 -4,388,746 Infrastructure 20,851,025 308,543 -21,159,568 Total capital assets being depreciated 47,521,510 2,506,301 -50,027,811 Total capital assets 48,930,639 2,797,822 715,216 51,013,245 Less accumulated depreciation for: Land improvements (32,136)(1,904)-(34,040) Buildings and improvements (4,020,227)(451,007)-(4,471,234) Machinery and equipment (2,492,591)(199,609)-(2,692,200) Infrastructure (8,610,910)(337,574)-(8,948,484) Total accumulated depreciation (15,155,864)(990,094)-(16,145,958) Net capital assets being depreciated 32,365,646 1,516,207 -33,881,853 Business-Type capital assets, net of accumulated depreciation $33,774,775 $1,807,728 $715,216 $34,867,287 Interfund Receivables/Payables, Advances and Transfers Interfund Receivables/Payables The following is a schedule of interfund receivables and payables including any overdrafts on pooled cash and investment accounts: Receivable Fund Payable Fund Am ount General Public Transportation $1,173,197 General Nonmajor Governmental 12,071 Economic Development Nonmajor Governmental 266,377 Public Transportation Parks and Recreation 24 Nonmajor Governmental General 3,369 Nonmajor Governmental Parks and Recreation 87,989 Total, fund financial statements 1,543,027 Less interfund receivables created with internal service fund eliminations (351,363) Less government-wide eliminations (1,543,027) Total internal balances, government-wide statement of net position $(351,363) All amounts are due within one year. 51 City of Galesburg Notes to Financial Statements December 31, 2020 The principal purpose of these interfunds is to cover deficits related to the timing of grant reimbursements, allocation of health insurance expenditures and to fund capital projects. All remaining balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system and (3) payments between funds are made. Advances The Economic Development Fund is advancing funds to the TIF 3 Regency Capital Project Fund. The amounts advanced are determined by the deficiency of revenues over expenditures since the inception of the fund. Additionally, multiple funds advanced funds to the Utility Tax Capital Projects Fund to provide resources for future capital projects. The following is a schedule of interfund advances: Receivable Fund Payable Fund Am ount General Nonmajor Governmental $157,000 Economic Development Nonmajor Governmental 604,170 Parks and Recreation Nonmajor Governmental 157,000 Nonmajor Governmental Nonmajor Governmental 314,000 Total, fund financial statements 1,232,170 Less fund eliminations (1,232,170) Total, interfund advances, government-wide statement of net position $- The principal purpose of this advance is to fund capital projects for economic development in the City. For the Statement of Net Position, interfund advances which are owed within the governmental activities or business-type activities are netted and eliminated. Transfers The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Am ount General Nonmajor Governmental $62 Economic Development General 16,609 Parks and Recreation Nonmajor Governmental 10,092 Public Transportation General 273,643 Nonmajor Governmental General 1,344,020 Nonmajor Governmental Economic Development 363,175 Nonmajor Governmental Parks and Recreation 504,149 Nonmajor Governmental Nonmajor Governmental 2,423,583 Total, fund financial statements 4,935,333 Less fund eliminations (4,935,333) Total transfers, government-wide statement of activities $- 52 City of Galesburg Notes to Financial Statements December 31, 2020 Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Long-Term Obligations Long-term obligations activity for the year ended December 31, 2020, was as follows: Beginning Balance Increases Decreases Ending Balance Am ounts Due Within One Year Governmental Activities Bonds and notes payable: General obligation debt $10,500,000 $-$710,000 $9,790,000 $735,000 (Discounts)/Premiums: Bond premium 215,222 -23,853 191,369 - Total bonds and notes payable 10,715,222 -733,853 9,981,369 735,000 Other liabilities: Compensated absences 1,616,350 1,718,584 1,609,314 1,725,620 1,185,592 Net pension liability, IMRF 9,011,701 668,263 5,514,385 4,165,579 - Net pension liability, Town IMRF*187,565 -187,565 -- Net pension liability, Police 42,555,772 9,882,458 2,423,797 50,014,433 - Net pension liability, Firefighters'43,992,227 4,947,321 2,697,162 46,242,386 - Net OPEB liability 12,226,864 2,033,944 882,252 13,378,556 - Total other liabilities 109,590,479 19,250,570 13,314,475 115,526,574 1,185,592 Total governmental activities long- term liabilities $120,305,701 $19,250,570 $14,048,328 $125,507,943 $1,920,592 Business-Type Activities Bonds and notes payable: General obligation debt $14,120,000 $-$845,000 $13,275,000 $865,000 Notes payable, direct borrowing 496,869 -41,406 455,463 41,406 (Discounts)/Premiums: Bond premium 585,090 -71,929 513,161 - Total bonds and notes payable 15,201,959 -958,335 14,243,624 906,406 Other liabilities: Compensated absences 186,884 179,422 134,197 232,109 126,512 Net pension liability, IMRF 2,022,304 149,964 1,338,053 834,215 - Net OPEB liability 1,223,039 206,767 88,456 1,341,350 - Total other liabilities 3,432,227 536,153 1,560,706 2,407,674 126,512 Total business-type activities long- term liabilities $18,634,186 $536,153 $2,519,041 $16,651,298 $1,032,918 * For the year ended December 31, 2020, the IMRF net pension liability for the Township became a net pension asset of $83,417. 53 City of Galesburg Notes to Financial Statements December 31, 2020 General Obligation Debt All general obligation debt payable is backed by the full faith and credit of the City. Debt in the governmental funds will be retired by future property tax levies or tax increments accumulated by the debt service fund. Business-type activities debt is payable by revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies. Governmental Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2020 2011C Refunding Bonds issued to refund General Obligation Bonds, Series 2003, due in annual payments of $175,000 to $310,000 October 11, 2011 December 30, 2023 3.0% - 4.6%$2,915,000 $880,000 2013A General Obligation Bonds issued to finance infrastructure improvements for the North Seminary Street Business District, due in annual payments of $30,000 to $125,000 October 8, 2013 December 30, 2032 3.0% - 4.3%1,390,000 1,125,000 2016 General Obligation Bonds issued to finance capital improvements for the East Fremont Street overlay project and brick streets overlay project, due in annual payments of $345,000 to $670,000 February 2, 2016 December 30, 2035 3.0% - 3.5%9,600,000 7,785,000 Total governmental activities, general obligation debt $9,790,000 Business-Type Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2020 2015 General Obligation Bonds, due in annual payments of $115,000 to $610,000 May 6, 2015 December 30, 2032 3.0% - 3.25%$8,290,000 $6,190,000 2017 General Obligation Bonds, due in annual payments of $400,000 to $680,000 May 2, 2017 December 1, 2033 2.0% - 5.0%8,320,000 7,085,000 Total business-type activities, general obligation debt $13,275,000 54 City of Galesburg Notes to Financial Statements December 31, 2020 Debt service requirements to maturity are as follows: Governmental Activities Business-Type Activities General Obligation Debt General Obligation Debt Years Principal Interest Principal Interest 2021 $735,000 $326,620 $865,000 $464,744 2022 775,000 300,483 900,000 438,794 2023 810,000 272,403 930,000 407,294 2024 520,000 242,393 960,000 374,694 2025 545,000 225,993 990,000 348,319 2026-2030 3,060,000 858,363 5,480,000 1,223,044 2031-2035 3,345,000 334,973 3,150,000 246,419 Total $9,790,000 $2,561,228 $13,275,000 $3,503,308 Notes Payable The City borrowed funds from the Illinois Environmental Protection Agency (IEPA) for flood proofing existing structures at the City's well site near Oquawka, Illinois. The total loan commitment is $1,127,480, with $1,055,376 drawn at December 31, 2020. The agreement stipulates that 50 percent of the amount funded by American Recovery and Reinvestment Act (25 percent of total draws) will be forgiven and not require repayment. The balance requiring repayment at December 31, 2020 was $455,463. Principal payments will be due semiannually and no interest will be paid on the note. The final loan repayment schedule will be determined after the IEPA establishes the final principal amount. This note is repaid by the W ater Fund. Notes payable at December 31, 2020 consists of the following: Business-Type Activities Notes Payable Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2020 Loan, Illinois Environmental Protection Agency, due in semi-annual payments of $41,406 December 24, 2010 September 1, 2031 0%$1,127,480 $455,463 Total business-type activities notes payable $455,463 Debt service requirements to maturity are as follows: Business-Type Activities Notes Payable Years Principal Interest 2021 $41,406 $- 2022 41,406 - 2023 41,406 - 2024 41,406 - 2025 41,406 - 2026-2030 207,027 - 2031 41,406 - Total $455,463 $- 55 City of Galesburg Notes to Financial Statements December 31, 2020 Other Debt Information Compensated absences and net pension and OPEB liabilities attributable to governmental activities are generally liquidated by the General Fund. The City is a home rule municipality and, therefore, is not subject to the statutory general obligation debt limitations. Net Position/Fund Balances Net position reported on the government-wide statement of net position at December 31, 2020, includes the following: Governmental Activities Net investment in capital assets: Land $6,318,227 Construction in progress 1,825,534 Other capital assets, net of accumulated depreciation 71,408,679 Less long-term debt outstanding (net of premiums, discounts and deferred amounts on refunding) related to capital assets (8,599,471) Plus bond issuance insurance 21,522 Less unamortized debt premium related to capital assets (162,491) Total net investment in capital assets $70,812,000 56 City of Galesburg Notes to Financial Statements December 31, 2020 Governmental Funds Governmental fund balances reported on the fund financial statements at December 31, 2020, include the following: General Economic Development Parks and Recreation Public Transportation Nonmajor Funds Total Fund Balances Nonspendable: Prepaid items $348,487 $10,399 $32,112 $21,722 $18,235 $430,955 Inventories 32,399 --11,712 -44,111 Permanent fund principal ----561,782 561,782 Subtotal 380,886 10,399 32,112 33,434 580,017 1,036,848 Restricted for: Motor fuel tax ----2,334,991 2,334,991 Special enforcement ----540,423 540,423 General government ----139,925 139,925 Foreign fire ----129,130 129,130 Infrastructure improvements ----5,887 5,887 Economic development -734,117 ---734,117 TIF expenditures ----1,429,950 1,429,950 Town of the City ----1,366,611 1,366,611 Cemetery ----47,139 47,139 Public works ----536,552 536,552 Restricted donations 12,792 -140,714 -18,038 171,544 Subtotal 12,792 734,117 140,714 -6,548,646 7,436,269 Committed to: Capital projects ----1,590,468 1,590,468 West Main Street Overpass 182,266 ----182,266 Foreign fire expenditures 40,590 ----40,590 Parks and recreation encumbrances --14,988 --14,988 Property redevelopment ----1,071,029 1,071,029 Building repair and maintenance ----426,784 426,784 Community center building ----62,485 62,485 Economic development -6,748,676 ---6,748,676 Subtotal 222,856 6,748,676 14,988 -3,150,766 10,137,286 Assigned to: Economic development -3,905,226 ---3,905,226 Building repair and maintenance ----2,914,091 2,914,091 Computer replacement ----1,422,530 1,422,530 Vehicle replacement ----3,773,264 3,773,264 Player fields ----19,196 19,196 Capital projects ----249,947 249,947 Parks and recreation --1,842,880 --1,842,880 Subtotal -3,905,226 1,842,880 -8,379,028 14,127,134 Unassigned (deficit):11,312,598 --(1,132,752)(958,160)9,221,686 Total fund balances (deficit)$11,929,132 $11,398,418 $2,030,694 $(1,099,318)$17,700,297 $41,959,223 57 City of Galesburg Notes to Financial Statements December 31, 2020 Business-Type Activities Net investment in capital assets: Land $693,913 Construction in progress 291,521 Other capital assets, net of accumulated depreciation 33,881,853 Less Long-term debt outstanding (13,730,463) Plus deferred charge on refunding 846,568 Less unamortized debt premium (513,161) Total net investment in capital assets $21,470,231 Component Unit Galesburg Public Library This report contains the Galesburg Public Library (Library), which is included as a component unit. In addition to the basic financial statements and the preceding notes to financial statements which apply, the following additional disclosures are considered necessary for a fair presentation. Basis of Accounting/Measurement Focus The Library follows the modified accrual basis of accounting and the flow of economic resources measurement focus. Deposits and Investments Carrying Value Statement Balances Associated Risks Deposits $623,293 $623,834 Custodial credit risk - deposits Illinois Funds 5,574,837 5,574,837 Credit risk Mutual funds 2,751,272 2,751,272 N/A Stocks 513,774 513,774 Custodial credit risk - investments, concentration of credit risk Money market mutual funds - bond funds 1,058,809 1,058,809 Credit risk Petty cash 1,130 -N/A Total deposits and investments $10,523,115 $10,522,526 The Library categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. 58 City of Galesburg Notes to Financial Statements December 31, 2020 The Library utilized the fair market valuation method of recurring fair value measurements. As of December 31, 2020, the Library's investments were measured using valuation inputs as follows: December 31, 2020 Investment Type Level 1 Level 2 Level 3 Total Money market mutual funds, bond funds $1,058,809 $-$-$1,058,809 Mutual funds 2,751,272 --2,751,272 Stocks 513,774 --513,774 Total $4,323,855 $-$-$4,323,855 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the Library's deposits may not be returned to the Library. The Library does not have any deposits exposed to custodial credit risk. Investments For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Library will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Library does not have any investments exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. As of December 31, 2020, the Library's investments were rated as follows: Investment Type Standard & Poors Moody's Investors Services Illinois Funds AAAm N/R Money markets N/R N/R See Note 1 for further information on deposit and investment policies. 59 City of Galesburg Notes to Financial Statements December 31, 2020 Capital Assets Beginning Balance Additions Deletions Ending Balance Capital assets not being depreciated: Land $165,860 $421,692 $-$587,552 Construction in progress 110,551 2,000 41,680 70,871 Total capital assets not being depreciated 276,411 423,692 41,680 658,423 Capital assets being depreciated: Buildings and improvements 1,355,125 --1,355,125 Machinery and equipment 151,944 502,675 -654,619 Total capital assets being depreciated 1,507,069 502,675 -2,009,744 Total capital assets 1,783,480 926,367 41,680 2,668,167 Less accumulated depreciation for: Buildings and improvements (952,024)(18,170)-(970,194) Machinery and equipment (151,944)(14,736)-(166,680) Total accumulated depreciation (1,103,968)(32,906)-(1,136,874) Net capital assets being depreciated 403,101 469,769 -872,870 Total Library capital assets, net of accumulated depreciation $679,512 $893,461 $41,680 $1,531,293 Long-Term Obligations On July 1, 2019, the Library entered into a loan agreement with the Library Foundation, wherein the Foundation loaned $3,000,000 to the Library. The Loan is for twelve months with an interest rate of 3.75 percent, payable semi-annually, with the principal payable on July 1, 2020. As the Foundation is reported as part of the Library in the government-wide financial statements, the $3,000,000 long-term liability of the Library and the $3,000,000 receivable of the Foundation are netted and eliminated for reporting purposes. On October 1, 2019, the Foundation borrowed $3,000,000 from U.S. Bank with an initial interest rate of 3.75 percent. Monthly interest only payments in amounts determined by the lender shall be paid by the Foundation on the 30th day of each month, commencing on October 30, 2019 and continuing until the maturity date of July 1, 2021. 60 City of Galesburg Notes to Financial Statements December 31, 2020 On April 21, 2020, the Library issued $2,000,500 in debt certificates with an initial interest rate of 3.25 percent. Monthly interest only payments in amounts determined by the lender are paid on the 28th of each month, commencing on May 28, 2020 and continuing until the maturity date of April 28, 2022. Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Debt certificates - direct borrowing $-$2,000,500 $-$2,000,500 $- Notes payable - direct borrowing 3,000,000 --3,000,000 3,000,000 Compensated absences 108,241 101,215 78,734 130,722 41,337 Net pension liability - IMRF 1,137,738 84,369 741,962 480,145 - Net OPEB liability 18,652 3,069 1,344 20,377 - Total $4,264,631 $2,189,153 $822,040 $5,631,744 $3,041,337 Debt service requirements to maturity for debt certificates and notes payable are as follows: Principal Interest 2021 $3,000,000 $66,280 2022 2,000,500 27,271 Total $5,000,500 $93,551 4.Other Information Employees' Retirement System The City contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent-multiple-employer public employee retirement system; the Police Pension Plan which is a single-employer pension plan; and the Firefighters' Pension Plan which is a single-employer pension plan. The benefits, benefit levels, employee contributions and employer contributions for the plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The Police Pension Plan and the Firefighters' Pension Plan do not issue separate reports on the pension plans. IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. This report is also available for download at www.imrf.org. 61 City of Galesburg Notes to Financial Statements December 31, 2020 For the year ended December 31, 2020, the City recognized the following balances in the government-wide financial statements: Total Pension Liability Net Pension Liability Deferred Outflows of Resources Deferred Inflows of Resources Pension Expense IMRF, City and Library $67,900,947 $5,479,939 $3,738,484 $3,721,471 $1,768,022 IMRF, Town*2,439,145 -1,146,509 763,079 39,534 Police Pension Plan 81,048,280 50,014,433 15,561,962 1,449,886 6,627,903 Firefighters' Pension Plan 74,274,685 46,242,386 9,379,594 1,827,654 6,568,107 Total $225,663,057 $101,736,758 $29,826,549 $7,762,090 $15,003,566 As of December 31, 2020, the Township reported an IMRF net pension asset of $83,417. Illinois Municipal Retirement Fund - City and Library Plan Description All employees (other than those covered by the Police and Firefighters' Pension plans) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2. For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with 8 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3 percent of their final rate of earnings (average of the highest 48 consecutive months' earnings during the last 10 years) for credited service up to 15 years and 3 percent for each year thereafter. Em ployees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3 percent of their final rate of earnings for the first 15 years of service credit, plus 2 percent for each year of service after 15 years to a maximum of 75 percent of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased ever year after retirement, upon reaching age 67, by the lesser of 3 percent of the original pension amount or 1/2 of the increase in the Consumer Price Index of the original pension amount. Under the employer number within IMRF, both the City and Library contribute to the plan. As a result, IMRF is considered to be an agent multiple-employer plan through which cost-sharing occurs between the City and Library. Plan Membership At December 31, 2019, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 199 Inactive, non-retired members 60 Active members 148 Total 407 62 City of Galesburg Notes to Financial Statements December 31, 2020 Contributions As set by statute, City and Library employees participating in IMRF are required to contribute 4.50 percent of their annual covered salary. The statute requires the City and Library to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The City and Library’s actuarially determined contribution rate for calendar year 2019 was 13.60 percent of annual covered payroll for IMRF. The City and Library also contribute for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability/(Asset) The net pension liability/(asset) was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of that date. Summary of Significant Accounting Policies For purposes of measuring the net pension liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of IMRF and additions to/deductions from IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Actuarial Assumptions The total pension liability for IMRF was determined by actuarial valuations performed as of December 31, 2019 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Investment Rate of Return 7.25% Salary increases 3.35% to 14.25%, including inflation Price inflation 2.50% Mortality For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. 63 City of Galesburg Notes to Financial Statements December 31, 2020 Long-Term Expected Real Rate of Return The long-term expected rate of return on pension plan investments was determined using an asset allocation study in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce long-term expected rate of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Projected Returns/Risks Asset Class Target Allocation One Year Arithmetic Ten Year Geometric Equities %37.00 %7.05 %5.75 International equities 18.00 8.10 6.50 Fixed income 28.00 3.70 3.25 Real estate 9.00 6.35 5.20 Alternatives 7.00 Private equity 11.30 7.60 Commodities 4.65 3.60 Cash equivalents 1.00 1.85 1.85 Discount Rate The discount rate used to measure the total pension liability for IMRF was 7.25 percent. The discount rate calculated using the December 31, 2018 measurement date was 7.25 percent. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that City and Library contributions will be made at rates equal to the difference between actuarially determined contribution rate and the member rate. Based on those assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefits to determine the total pension liability. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability/(asset) to changes in the discount rate. The table below presents net pension liability/(asset) of the City and Library calculated using the discount rate of 7.25 percent as well as what the net pension liability/(asset) would be if it were to be calculated using a discount rate that is 1 percentage point lower (6.25 percent) or 1 percentage point higher (8.25 percent) than the current rate: 1% Decrease Current Discount Rate 1% Increase City: Total pension liability $71,447,522 $63,595,775 $57,114,989 Plan fiduciary net position 58,595,981 58,595,981 58,595,981 Net pension liability/(asset)$12,851,541 $4,999,794 $(1,480,992) 64 City of Galesburg Notes to Financial Statements December 31, 2020 1% Decrease Current Discount Rate 1% Increase Library: Total pension liability $4,836,702 $4,305,172 $3,866,449 Plan fiduciary net position 3,825,027 3,825,027 3,825,027 Net pension liability/(asset)$1,011,675 $480,145 $41,422 Total: Total pension liability $76,284,224 $67,900,947 $60,981,438 Plan fiduciary net position 62,421,008 62,421,008 62,421,008 Net pension liability/(asset)$13,863,216 $5,479,939 $(1,439,570) Changes in Net Pension Liability/(Asset) The changes in net pension liability/(asset)for the calendar year ended December 31, 2019 were as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) City: Balances at December 31, 2018 $62,246,268 $51,212,263 $11,034,005 Service cost 732,814 -732,814 Interest on total pension liability 4,283,308 -4,283,308 Differences between expected and actual experience of the total pension liability 181,337 -181,337 Change of assumptions 71,265 -71,265 Benefit payments, including refunds of employee contributions (3,919,217)(3,919,217)- Contributions, employer -1,018,167 (1,018,167) Contributions, employee -339,011 (339,011) Net investment income -9,768,518 (9,768,518) Other (net transfer)-177,239 (177,239) Balances at December 31, 2019 $63,595,775 $58,595,981 $4,999,794 Library: Balances at December 31, 2018 $4,253,684 $3,115,946 $1,137,738 Service cost 70,374 -70,374 Interest on total pension liability 411,339 -411,339 Differences between expected and actual experience of the total pension liability 17,414 -17,414 Change of assumptions (71,265)-(71,265) Benefit payments, including refunds of employee contributions (376,374)(376,374)- Contributions, employer -97,778 (97,778) Contributions, employee -32,556 (32,556) Net investment income -938,100 (938,100) Other (net transfer)-17,021 (17,021) Balances at December 31, 2019 $4,305,172 $3,825,027 $480,145 65 City of Galesburg Notes to Financial Statements December 31, 2020 Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Total: Balances at December 31, 2018 $66,499,952 $54,328,209 $12,171,743 Service cost 803,188 -803,188 Interest on total pension liability 4,694,647 -4,694,647 Differences between expected and actual experience of the total pension liability 198,751 -198,751 Benefit payments, including refunds of employee contributions (4,295,591)(4,295,591)- Contributions, employer -1,115,945 (1,115,945) Contributions, employee -371,567 (371,567) Net investment income -10,706,618 (10,706,618) Other (net transfer)-194,260 (194,260) Balances at December 31, 2019 $67,900,947 $62,421,008 $5,479,939 Plan fiduciary net position as a percentage of the total pension liability %91.93 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2020, the City and Library recognized pension expense of $1,768,022. The City and Library reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources City: Difference between expected and actual experience $1,307,841 $14,651 Assumption changes 937,867 712,205 Net difference between projected and actual earnings on pension plan investments -2,668,545 Contributions subsequent to the measurement date 1,163,771 - Total $3,409,479 $3,395,401 Library: Difference between expected and actual experience $125,596 $1,407 Assumption changes 90,066 68,395 Net difference between projected and actual earnings on pension plan investments -256,268 Contributions subsequent to the measurement date 113,343 - Total $329,005 $326,070 66 City of Galesburg Notes to Financial Statements December 31, 2020 Deferred Outflows of Resources Deferred Inflows of Resources Total: Difference between expected and actual experience $1,433,437 $16,058 Assumption changes 1,027,933 780,600 Net difference between projected and actual earnings on pension plan investments -2,924,813 Contributions subsequent to the measurement date 1,277,114 - Total $3,738,484 $3,721,471 The amount reported as deferred outflows resulting from contributions subsequent to the measurement date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year ending December 31, 2021. The remaining amounts reported as deferred outflows and inflows of resources related to pensions ($(1,260,101)) will be recognized in pension expense as follows: Year Ending December 31,City Library Total 2021 $(271,011)$(26,026)$(297,037) 2022 (361,013)(34,669)(395,682) 2023 716,392 68,797 785,189 2024 (1,234,061)(118,510)(1,352,571) Total $(1,149,693)$(110,408)$(1,260,101) Illinois Municipal Retirement Fund - Town of the City of Galesburg Plan Description All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2. For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at or after age 60 with 8 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1 2/3 percent of their final rate of earnings (average of the highest 48 consecutive months' earnings during the last 10 years) for credited service up to 15 years and 2 percent for each year thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3 percent of their final rate of earnings for the first 15 years of service credit, plus 2 percent for each year of service after 15 years to a maximum of 75 percent of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased ever year after retirement, upon reaching age 67, by the lesser of 3 percent of the original pension amount or 1/2 of the increase in the Consumer Price Index of the original pension amount. 67 City of Galesburg Notes to Financial Statements December 31, 2020 Plan Membership At December 31, 2019, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 10 Inactive, non-retired members 2 Active members 7 Total 19 Contributions As set by statute, Town employees participating in IMRF are required to contribute 4.50 percent of their annual covered salary. The statute requires the Town to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The Town's actuarially determined contribution rate for calendar year 2019 was 5.98 percent of annual covered payroll. The Town also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability/(Asset) The net pension liability/(asset) was measured as of December 31, 2019 and the total pension liability used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of that date. Summary of Significant Accounting Policies For purposes of measuring the net pension liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of IMRF and additions to/deductions from IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Actuarial Assumptions The total pension liability for IMRF was determined by actuarial valuations performed as of December 31, 2019 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Investment Rate of Return 7.25% Salary increases 3.35% to 14.25%, including inflation Price inflation 2.50% 68 City of Galesburg Notes to Financial Statements December 31, 2020 Mortality For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. Long-Term Expected Real Rate of Return See Long-Term Expected Real Rate of Return section in Illinois Municipal Retirement Fund - City and Library note above: Discount Rate The discount rate used to measure the total pension liability for IMRF was 7.25 percent. The discount rate calculated using the December 31, 2018 measurement date was 7.25 percent. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Town contributions will be made at rates equal to the difference between actuarially determined contribution rate and the member rate. Based on those assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefits to determine the total pension liability. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability/(asset) to changes in the discount rate. The table below presents the net pension liability/(asset) of the Town calculated using the discount rate of 7.25 percent as well as what the net pension liability/(asset) would be if it were to be calculated using a discount rate that is 1 percentage point lower (6.25 percent) or 1 percentage point higher (8.25 percent) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $2,697,379 $2,439,145 $2,218,961 Plan fiduciary net position 2,522,562 2,522,562 2,522,562 Net pension liability/(asset)$174,817 $(83,417)$(303,601) 69 City of Galesburg Notes to Financial Statements December 31, 2020 Changes in Net Pension Liability/(Asset) The Town changes in net pension liability/(asset)for the calendar year ended December 31, 2019 were as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Balances at December 31, 2018 $2,357,778 $2,170,213 $187,565 Service cost 41,784 -41,784 Interest on total pension liability 167,692 -167,692 Differences between expected and actual experience of the total pension liability 3,258 -3,258 Benefit payments, including refunds of employee contributions (131,367)(131,367)- Contributions, employer -23,000 (23,000) Contributions, employee -17,279 (17,279) Net investment income -427,878 (427,878) Other (net transfer)-15,559 (15,559) Balances at December 31, 2019 $2,439,145 $2,522,562 $(83,417) Plan fiduciary net position as a percentage of the total pension liability %103.42 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2020, the Town recognized pension expense of $39,534. The Town reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $11,486 $- Assumption changes 1,135,023 648,573 Net difference between projected and actual earnings on pension plan investments -114,506 Total $1,146,509 $763,079 70 City of Galesburg Notes to Financial Statements December 31, 2020 The amounts reported as deferred outflows and inflows of resources related to pensions ($383,430) will be recognized in pension expense as follows: Year Ending December 31,Total 2021 $464,595 2022 (36,697) 2023 10,187 2024 (54,655) Total $383,430 Police Pension Plan Description Police sworn personnel are covered by the Police Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police Pension Fund as provided for in Illinois Compiled Statutes. Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one half of the salary attached to the rank on the last day of service, or for one year prior to the last day, whichever is greater. The pension shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary. Employees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and paid upon reaching at least the age 55, by 3 percent of the original pension and 3 percent compounded annually thereafter. Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5 percent of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75 percent of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a police shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3 percent or one-half the annual unadjusted percentage increase in the CPI, whichever is less. 71 City of Galesburg Notes to Financial Statements December 31, 2020 Plan Membership At December 31, 2019, the actuarial valuation date, the Police Pension membership consisted of: Retirees and beneficiaries 57 Inactive, non-retired members 9 Active members 48 Total 114 Contributions Covered employees are required to contribute 9.91 percent of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The City is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the City’s contributions must accumulate to the point where the past service cost for the Police Pension Plan is 90 percent funded by the year 2040. The City's actuarially determined contribution rate for the fiscal year ending December 31, 2020 was 70.45 percent of annual covered payroll. Net Pension Liability/(Asset) The net pension liability/(asset) was measured as of December 31, 2020 and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of Significant Accounting Policies The financial statements of the Police Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The City’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. 72 City of Galesburg Notes to Financial Statements December 31, 2020 Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed as of December 31, 2020 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.25% Projected salary increases 3.75% - 4.78% Cost-of-living adjustments 2.25% Mortality rates were based on the PubS-2010(A) Study Adjusted for Plan Status, Demographics and Illinois Public Pension Data.. The actuarial assumptions were based on the results of a 2020 actuarial experience study conducted by the independent actuary for Illinois Police Officers. Discount Rate The discount rate used to measure the total pension liability for the Police Pension Plan was 5.04 percent. The discount rate calculated using the December 31, 2019 measurement date was 5.46 percent. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected not to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments of 6.75 percent was blended with the index rate of 2.12 percent for tax exempt 20-year general obligation municipal bonds with an average AA credit rating as of December 31, 2020 to arrive at a discount rate of 5.04 percent used to determine the total pension liability. The year ending December 31, 2065 is the last year in the project period for which projected benefit payments are fully funded. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the City calculated using the discount rate of 5.04 percent as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (4.04 percent) or 1 percentage point higher (6.04 percent) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $94,812,654 $81,048,280 $70,144,376 Plan fiduciary net position 31,033,847 31,033,847 31,033,847 Net pension liability $63,778,807 $50,014,433 $39,110,529 73 City of Galesburg Notes to Financial Statements December 31, 2020 Changes in Net Pension Liability/(Asset) The City's changes in net pension liability/(asset) for the calendar year ended December 31, 2020 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2019 $71,456,650 $28,900,878 $42,555,772 Service cost 1,121,695 -1,121,695 Interest on total pension liability 3,965,432 -3,965,432 Differences between expected and actual experience of the total pension liability 2,356,363 -2,356,363 Change of assumptions 5,274,383 -5,274,383 Benefit payments, including refunds of employee contributions (3,126,243)(3,126,243)- Contributions - employer -2,423,797 (2,423,797) Contributions - employee -442,514 (442,514) Net investment income -2,417,041 (2,417,041) Administration -(24,140)24,140 Balances at December 31, 2020 $81,048,280 $31,033,847 $50,014,433 Plan fiduciary net position as a percentage of the total pension liability %38.29 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2020, the City recognized pension expense of $6,627,903. The City reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $3,336,815 $549,806 Assumption changes 12,225,147 340,198 Net difference between projected and actual earnings on pension plan investments -559,882 Total $15,561,962 $1,449,886 74 City of Galesburg Notes to Financial Statements December 31, 2020 The amounts reported as deferred outflows and inflows of resources related to pensions ($14,112,076) will be recognized in pension expense as follows: Year Ending December 31,Am ount 2021 $3,649,533 2022 3,316,814 2023 2,504,405 2024 2,709,846 2025 1,931,478 Total $14,112,076 Firefighters' Pension Plan Description Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes. Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive a monthly retirement benefit of one half of the monthly salary attached to the rank held in the fire service at the date of retirement. The monthly pension shall be increased by one twelfth of 2.5 percent of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75 percent of such monthly salary. Employees with at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and paid upon reaching at least the age 55, by 3 percent of the original pension and 3 percent compounded annually thereafter. Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5 percent of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75 percent of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3 percent or one-half the annual unadjusted percentage increase in the CPI, whichever is less. 75 City of Galesburg Notes to Financial Statements December 31, 2020 Plan Membership At December 31, 2019, the actuarial valuation date, the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries 66 Inactive, non-retired members 4 Active members 42 Total 112 Contributions Participants contribute a fixed percentage of their base salary to the plans. At December 31, 2020, the contribution percentage was 9.455 percent. If a participant leaves covered employment with less than 20 years of service, accumulated participant contributions may be refunded without accumulated interest. The City is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the City’s contributions must accumulate to the point where the past service cost for the Firefighters' Pension Plan is 90 percent funded by the year 2040. The City's actuarially determined contribution rate for the fiscal year ending December 31, 2020 was 87.74 percent of annual covered payroll. Net Pension Liability/(Asset) The net pension liability/(asset) was measured as of December 31, 2020 and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of Significant Accounting Policies The financial statements of the Firefighters' Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The City’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. 76 City of Galesburg Notes to Financial Statements December 31, 2020 Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed as of December 31, 2020 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.25% Projected salary increases 3.75% - 7.30% Cost-of-living adjustments 2.25% Mortality rates were based on the PubS-2010(A) Study Adjusted for Plan Status, Demographics and Illinois Public Pension Data. The actuarial assumptions were based on the results of a 2020 actuarial experience study conducted by the independent actuary for Illinois Firefighters. Discount Rate The discount rate used to measure the total pension liability for the Firefighters' Pension Plan was 5.04 percent. The discount rate calculated using the December 31, 2019 measurement date was 5.28 percent. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected not to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments of 6.75 percent was blended with the index rate of 2.12 percent for tax exempt 20-year general obligation municipal bonds with an average AA credit rating as of December 31, 2020 to arrive at a discount rate of 5.04 percent used to determine the total pension liability. The year ending December 31, 2064 is the last year in the project period for which projected benefit payments are fully funded. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the City calculated using the discount rate of 5.04 percent as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (4.04 percent) or 1 percentage point higher (6.04 percent) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $86,696,658 $74,274,685 $62,745,556 Plan fiduciary net position 28,032,299 28,032,299 28,032,299 Net pension liability $58,664,359 $46,242,386 $34,713,257 77 City of Galesburg Notes to Financial Statements December 31, 2020 Changes in Net Pension Liability/(Asset) The City's changes in net pension liability/(asset) for the calendar year ended December 31, 2020 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2019 $69,170,688 $25,178,461 $43,992,227 Service cost 1,238,084 -1,238,084 Interest on total pension liability 3,620,103 -3,620,103 Differences between expected and actual experience of the total pension liability 575,990 -575,990 Change of assumptions 2,891,832 -2,891,832 Benefit payments, including refunds of employee contributions (3,222,012)(3,222,012)- Contributions, employer -2,697,162 (2,697,162) Contributions, employee -294,398 (294,398) Net investment income -2,660,192 (2,660,192) Other -448,641 (448,641) Administration -(24,543)24,543 Balances at December 31, 2020 $74,274,685 $28,032,299 $46,242,386 Plan fiduciary net position as a percentage of the total pension liability %37.74 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2020, the City recognized pension expense of $6,568,107. The City reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $953,528 $336,293 Assumption changes 8,426,066 - Net difference between projected and actual earnings on pension plan investments -1,491,361 Total $9,379,594 $1,827,654 78 City of Galesburg Notes to Financial Statements December 31, 2020 The amounts reported as deferred outflows and inflows of resources related to pensions ($7,551,940) will be recognized in pension expense as follows: Year Ending December 31,Am ount 2021 $2,935,573 2022 2,241,394 2023 1,505,750 2024 869,223 Total $7,551,940 Pension Segment Information Fiduciary Net Position Pension Trust Police Pension Fire Pension OPEB Trust Total Assets Cash and cash equivalents $3,049,028 $3,990,357 $-$7,039,385 Investments: U.S. government and agency obligations 4,331,685 3,192,349 -7,524,034 Mutual funds -11,009,759 1,643,206 12,652,965 Common and preferred stock -4,995,061 -4,995,061 Insurance contracts and annuities 19,941,424 282,072 -20,223,496 Municipal bonds -125,303 -125,303 Corporate bonds 3,959,101 4,663,850 -8,622,951 Receivables, (net allowances for uncollectibles) Accrued interest 18,635 44,109 -62,744 Total assets 31,299,873 28,302,860 1,643,206 61,245,939 Liabilities Accounts payable 266,026 270,561 -536,587 Total liabilities 266,026 270,561 -536,587 Net Position Restricted for OPEB --1,643,206 1,643,206 Restricted for retirement benefits 31,033,847 28,032,299 -59,066,146 Total net position $31,033,847 $28,032,299 $1,643,206 $60,709,352 79 City of Galesburg Notes to Financial Statements December 31, 2020 Changes in Plan Net Position Pension Trust Police Pension Fire Pension OPEB Trust Total Additions Contributions: Employer $2,423,797 $2,697,162 $973,397 $6,094,356 Participants 442,514 294,398 -736,912 Total contributions 2,866,311 2,991,560 973,397 6,831,268 Investment income: Net depreciation in fair value of investments 2,361,748 2,194,964 177,974 4,734,686 Interest income 79,492 535,691 -615,183 Total investment income 2,441,240 2,730,655 177,974 5,349,869 Less investment expense (24,328)(70,463)-(94,791) Net investment income 2,416,912 2,660,192 177,974 5,255,078 Miscellaneous:129 448,641 -448,770 Total additions 5,283,352 6,100,393 1,151,371 12,535,116 Deductions Benefits 3,126,243 3,222,012 837,332 7,185,587 Administration 24,140 24,543 1,009 49,692 Total deductions 3,150,383 3,246,555 838,341 7,235,279 Change in net position 2,132,969 2,853,838 313,030 5,299,837 Net position, beginning 28,900,878 25,178,461 1,330,176 55,409,515 Net position, ending $31,033,847 $28,032,299 $1,643,206 $60,709,352 Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; and workers compensation. The City has established self-insurance funds (internal service funds) to provide coverage for losses from general liability, property and workers' compensation insurance claims. Self Insurance For general liability and workers' compensation claims, the City is fully self-insured. For property claims, the City pays a specific per incident deductible and then has private insurance for all losses in excess of that amount. All claims handling procedures are performed by an independent claims administrator. 80 City of Galesburg Notes to Financial Statements December 31, 2020 All funds of the City participate in the risk management program. Amounts payable to the self- insurance funds are based on estimates of the amounts necessary to pay prior and current year claims and to establish a reserve for catastrophic losses. These estimates are determined based on historical claims experience. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Liabilities include an amount for claims that have been incurred but not reported. The City does not allocate overhead costs or other nonincremental costs to the claims liability. There have been no significant reductions in insurance coverage in the current year from prior years. The amount of settlements have not exceeded insurance coverage in the past three fiscal years. Claims Liability Prior Year Current Year Unpaid Claims, Beginning $225,000 $170,000 Current year claims and changes in estimates 195,971 17,300 Claim payments (250,971)(127,300) Unpaid Claims, Ending $170,000 $60,000 As of December 31, 2020, the entire balance of claims payable is expected to be paid within one year. Commitments and Contingencies Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board pronouncements are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government-wide statements and proprietary funds as expenses when the related liabilities are incurred. From time to time, the City is party to various pending claims and legal proceedings. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the City attorney that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the City's financial position or results of operations. The City has active construction projects as of December 31, 2020. W ork that has been completed on these projects but not yet paid for (including contract retainages) is reflected as accounts payable and expenditures. The City has an estimated remaining commitment of $2,935,831 related to these projects. Other Postemployment Benefits General Information About the OPEB Plan Plan Description The City administers the Other Postemployment Benefit Plan (OPEB Plan), a single-employer defined benefit plan that is used to provide postemployment benefits other than pensions (OPEB) for all permanent full-time general and public safety employees of the City and Library. Contribution requirements are established through collective bargaining agreements and may be amended only through negotiations between the City and the unions. 81 City of Galesburg Notes to Financial Statements December 31, 2020 Benefits Provided The OPEB Plan provides continuation of employer subsidized health coverage for the retiree and their dependents, if any, upon retirement from the City after meeting the age and service requirements for retirement. The City pays 100 percent of the premium cost of coverage of the lowest cost health plan offered for retirees to age 65 for employees hired prior to 2011 (except those employed from Library, Township and City Assessor, who pay 100 percent of the premium costs). Retirees pay a portion of the premium cost of coverage for spousal coverage. Disabled officers are covered to age 65 paid 100 percent by the City. Employees hired after 2010 who retire may elect to continue coverage under the plan by contributing 100 percent of the premium rate costs. Employees Covered by Benefit Terms At December 31, 2020, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments 72 Active plan members 251 323 Contributions The City Council has the authority to establish and amend the contribution requirements of the City and employees. The Council establishes rates based on an actuarially determined rate. For the year ended December 31, 2020, the City's average contribution rate was 6.17 percent of covered payroll. The City pays all benefit claims from operations and makes annual contributions to the plan. Plan members are not required to contribution to the plan. Net OPEB Liability The City's net OPEB liability was measured as of December 31, 2020, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date. Actuarial Assumptions The total OPEB liability in the December 31, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Salary increases 3.50% Investment rate of return 2.00% Healthcare cost trend rates 7.50% for 2020, decreasing in increments of 0.50% annually to an ultimate rate of 4.00% for 2028 and after Mortality rates were based on the RP-2014 Blue Collar base rates projected to 2020 using scale MP2020 for Police and Fire participants. For other participants, the RP-2014 base rates projected 2020 using scale MP2020 were used. 82 City of Galesburg Notes to Financial Statements December 31, 2020 The actuarial assumptions used in the December 31, 2020 valuation were based on the results of an actuarial experience study for the period from 2004 through 2008 adjusted forward by mortality improvement scales from the Society of Actuaries and an actuarial experience study for the period from 2004 through 2011 from the Illinois Department of Insurance.. Investment Policy See Note 1 for disclosures related to the OPEB Plan's investment policy. The OPEB Plan's investment policy does not include formal target allocations for the diversification of the portfolio across a broad selection of distinct asset classes. Money-weighted rate of return For the year ended December 31, 2020, the annual money-weighted rate of return on investments, net of investment expense, was 11.97 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Discount Rate The discount rate used to measure the total OPEB liability was 2.00 percent. The projection of cash flows used to determine the discount rate assumed that City and Library contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position will not be available to make all projected future benefit payments of current plan members. Therefore, a blended rate, based on the long-term expected rate of return on OPEB Plan investments and 20-year GO municipal bond rate, was used to determine the total OPEB liability. Changes in the Net OPEB Liability Increase (Decrease) Total OPEB Liability (a) Plan Fiduciary Net Position (b) Net OPEB Liability (a)-(b) Balances at December 31, 2019 $14,798,731 $1,330,176 $13,468,555 Service cost 530,708 -530,708 Interest 395,452 -395,452 Differences between expected and actual experience (299,490)-(299,490) Changes in assumptions 1,796,429 -1,796,429 Contributions-employer -973,397 (973,397) Net investment income -177,974 (177,974) Benefit payments (837,332)(837,332)- Administrative expense (1,009)(1,009)- Balances at December 31, 2020 $16,383,489 $1,643,206 $14,740,283 Net OPEB liability, City $16,360,837 $1,640,931 $14,719,906 Net OPEB liability, Library 22,652 2,275 20,377 Net OPEB liability, Total $16,383,489 $1,643,206 $14,740,283 Plan fiduciary net position as a percentage of the total OPEB liability %10.03 83 City of Galesburg Notes to Financial Statements December 31, 2020 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City and Library, as well as what the City's and Library's net OPEB liability would be if it were calculated using a discount rate that is 1- percentage-point lower (1.00 percent) or 1-percentage-point higher (3.00 percent) than the current discount rate: 1% Decrease Discount Rate 1% Increase (1.00%)(2.00%)(3.00%) Net OPEB liabilit, City $16,307,634 $14,719,906 $13,329,720 Net OPEB liability, Library 22,575 20,377 18,453 Net OPEB liability, Total $16,330,209 $14,740,283 $13,348,173 Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City and Library, as well as what the City's and Library's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (6.50 percent decreasing to 3.00 percent) or 1-percentage- point higher (8.50 percent decreasing to 5.00 percent) than the current healthcare cost trend rates: 1% Decrease (6.50% Decreasing to 3.00%) Healthcare Cost Trend Rates (7.50% Decreasing to 4.00%) 1% Increase (8.50% Decreasing to 5.00%) Net OPEB liability, City $13,019,261 $14,719,906 $16,706,638 Net OPEB liability, Library 18,023 20,377 23,127 Net OPEB liability, Total $13,037,284 $14,740,283 $16,729,765 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2020, the City and Library recognized OPEB expense of $936,231. At December 31, 2020, the City and Library reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $-$1,337,272 Changes of assumptions or other inputs 2,630,340 167,379 Differences between expected and actual investment earnings -165,501 Total $2,630,340 $1,670,152 Deferred Outflows / Inflows, City $2,626,704 $1,667,843 Deferred Outflows / Inflows, Library 3,636 2,309 Total $2,630,340 $1,670,152 84 City of Galesburg Notes to Financial Statements December 31, 2020 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31:City Library Total 2021 $48,441 $67 $48,508 2022 48,441 67 48,508 2023 59,975 83 60,058 2024 87,844 122 87,966 2025 87,844 122 87,966 Thereafter 626,316 866 627,182 Total $958,861 $1,327 $960,188 Tax Increment Financing District The City of Galesburg has established several Tax Increment Redevelopment Project Areas (RPA's) to encourage redevelopment of certain sites for more market oriented commercial uses of the properties that will enhance their value and improve their contributions to the City and its surrounding areas. As part of the redevelopment plans, the City has made significant improvements to utilities, public parking, intersections and traffic signalization, streets and landscaping. The redevelopment plans also include site preparation, land acquisition and assembly and demolition/clearance. Construction and development in the RPA's were the responsibility of developers and are substantially complete. To entice development of the areas, the City created tax increment financing (TIF) districts to finance public improvements made within the RPA's. Several funds have been established to record the revenues generated in the RPA's that relate directly to servicing the debt issued to make public improvements in the RPA's. Tax Abatement Tax abatements are a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. The City is disclosing individual abatement agreements over $100,000 individually and agreements under $100,000 in the aggregate. 85 City of Galesburg Notes to Financial Statements December 31, 2020 The City, through its Tax Incremental Financing Districts 2, 3, 4 and 5, has entered into tax abatement agreements with developers in the form of tax increment financing incentive payments to stimulate economic development. The abatements are authorized through City Council resolutions for the reimbursement of property tax increment for various projects such as construction of a Holiday Inn Express Hotel; repurposing the first floor of a building for a pets and supplies store; rehabilitate property at 246 E Main Street; and a car detailing business. The developers pay property taxes as they become due and after meeting the criteria established in the development agreements, are entitled to a future incentive payments that directly correlate to the taxes paid. Incentive payments for the year ended December 31, 2020 totaled $295,953. Individual agreements with payments in the year exceeding $100,000 are as follows: Ag reement Description Calculation Method Developer Commitment Current Year Payments Janko Group - Holiday Inn Express In dollars, not to exceed $1,420,720 Construction and operation of Holiday Inn Express $168,830 The City has entered into tax abatement agreements with developers in the form of sales tax rebate incentive payments to stimulate economic development. The abatements are authorized through City Council resolutions. The developers make sales tax payments as they become due and, after meeting the criteria established in the development agreements, are entitled to incentive payments that directly correlate to the taxes paid. The incentives are calculated based on a percentage of sales taxes paid by the developers, with cumulative not to exceed maximum payments. The developer commitments include the construction and operation of a Kohl's store and rehabilitation of an existing building for the operation of a furniture store. Total incentive payments for the year ended December 31, 2020 were $123,935. 86 City of Galesburg Notes to Financial Statements December 31, 2020 Effect of New Accounting Standards on Current-Period Financial Statements The Governmental Accounting Standards Board (GASB) has approved the following: Statement No. 87, Leases Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period Statement No. 90, Majority Equity Interests - an amendment of GASB Statements No. 14 and No. 61 Statement No. 91, Conduit Debt Obligations Statement No. 92, Omnibus 2020 Statement No. 93, Replacement of Interbank Offered Rates Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements Statement No. 96, Subscription-Based Information Technology Arrangements Statement No. 97, Certain Component Unit Criteria and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84 and a supersession of GASB Statement No. 32 When they become effective, application of these standards may restate portions of these financial statements. 87 R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N See notes to required supplementary information 88 City Library Total City Library Total City Total Pension Liability Service cost 835,600$ 51,869$ 887,469$ 769,916$ 47,792$ 817,708$ 765,484$ Interest changes of benefit terms 3,654,093 226,824 3,880,917 3,800,892 362,372 4,163,264 3,937,799 Differences between expected and actual experience 329,002 20,422 349,424 1,207,175 74,934 1,282,109 584,340 Changes of assumptions 1,805,007 112,044 1,917,051 66,792 4,146 70,938 (338,553) Benefit payments, including refunds of member contributions (2,852,584) (177,071) (3,029,655) (3,100,373) (192,452) (3,292,825) (3,317,124) Net change in total pension liability 3,771,118 234,088 4,005,206 2,744,402 296,792 3,041,194 1,631,946 Total Pension Liability, Beginning 49,729,729 3,086,918 52,816,647 53,500,848 3,321,005 56,821,853 56,245,250 Total Pension Liability, Ending 53,500,847$ 3,321,006$ 56,821,853$ 56,245,250$ 3,617,797$ 59,863,047$ 57,877,196$ Plan Fiduciary Net Position Employer contributions 1,068,399$ 66,320$ 1,134,719$ 996,715$ 61,870$ 1,058,585$ 1,232,864$ Employee contributions 335,832 20,846 356,678 352,560 21,885 374,445 332,082 Net investment income 2,874,053 178,404 3,052,457 242,344 15,043 257,387 3,142,696 Benefit payments, including refunds of member contributions (2,852,584) (177,071) (3,029,655) (3,100,373) (192,452) (3,292,825) (3,317,124) Other (net transfer)78,748 4,888 83,636 1,015,743 63,051 1,078,794 (61,139) Net change in plan fiduciary net position 1,504,448 93,387 1,597,835 (493,011) (30,603) (523,614) 1,329,379 Plan Fiduciary Net Position, Beginning 47,839,804 2,969,603 50,809,407 49,344,253 3,062,989 52,407,242 48,851,242 Plan Fiduciary Net Position, Ending 49,344,252$ 3,062,990$ 52,407,242$ 48,851,242$ 3,032,386$ 51,883,628$ 50,180,621$ City's Net Pension Liability, Ending 4,156,595$ 258,016$ 4,414,611$ 7,394,008$ 585,411$ 7,979,419$ 7,696,575$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 92.23%86.67% Covered Payroll 7,926,152$ 8,027,563$ City's Net Pension Liability as a Percentage of Covered Payroll 55.70%99.40% Notes to Schedule: The City implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. Additional years' information will be presented as it becomes available. City of Galesburg, Illinois Illinois Municipal Retirement Fund Schedule of Changes in the City's Net Pension Liability and Related Ratios Last Six Fiscal Years 20162015 See notes to required supplementary information 89 Library Total City Library Total City Library Total City Library Total 84,368$ 849,852$ 762,056$ 54,613$ 816,669$ 675,940$ 69,697$ 745,637$ 732,814$ 70,374$ 803,188$ 434,008 4,371,807 4,224,265 302,734 4,526,999 4,060,308 418,666 4,478,974 4,283,308 411,339 4,694,647 64,404 648,744 (38,975) (2,793) (41,768) 1,889,328 194,812 2,084,140 181,337 17,414 198,751 192,212 (146,341) (1,557,522) (408,326) (1,965,848) 1,602,544 229,937 1,832,481 71,265 (71,265) - (365,600) (3,682,724) (3,644,305) (261,171) (3,905,476) (3,604,567) (371,674) (3,976,241) (3,919,217) (376,374) (4,295,591) 409,392 2,041,338 (254,481) (314,943) (569,424) 4,623,553 541,438 5,164,991 1,349,507 51,488 1,400,995 3,617,797 59,863,047 57,877,196 4,027,189 61,904,385 57,622,715 3,712,246 61,334,961 62,246,268 4,253,684 66,499,952 4,027,189$ 61,904,385$ 57,622,715$ 3,712,246$ 61,334,961$ 62,246,268$ 4,253,684$ 66,499,952$ 63,595,775$ 4,305,172$ 67,900,947$ 135,881$ 1,368,745$ 1,088,795$ 78,029$ 1,166,824$ 1,017,042$ 104,869$ 1,121,911$ 1,018,167$ 97,778$ 1,115,945$ 36,601 368,683 336,127 24,089 360,216 361,455 37,270 398,725 339,011 32,556 371,567 346,375 3,489,071 9,205,609 659,725 9,865,334 (3,427,845) (353,452) (3,781,297) 9,768,518 938,100 10,706,618 (365,600) (3,682,724) (3,644,305) (261,171) (3,905,476) (3,604,567) (371,674) (3,976,241) (3,919,217) (376,374) (4,295,591) (6,739) (67,878) (1,601,466) (114,770) (1,716,236) 1,300,797 134,127 1,434,924 177,239 17,021 194,260 146,518 1,475,897 5,384,760 385,902 5,770,662 (4,353,118) (448,860) (4,801,978) 7,383,718 709,081 8,092,799 3,032,386 51,883,628 50,180,621 3,178,904 53,359,525 55,565,381 3,564,806 59,130,187 51,212,263 3,115,946 54,328,209 3,178,904$ 53,359,525$ 55,565,381$ 3,564,806$ 59,130,187$ 51,212,263$ 3,115,946$ 54,328,209$ 58,595,981$ 3,825,027$ 62,421,008$ 848,285$ 8,544,860$ 2,057,334$ 147,440$ 2,204,774$ 11,034,005$ 1,137,738$ 12,171,743$ 4,999,795$ 480,144$ 5,479,939$ 86.20%96.41%81.70%91.93% 8,024,144$ 8,004,796$ 8,116,006$ 8,205,963$ 106.49%27.54%149.97%66.78% 2020201920172018 See notes to required supplementary information 90 2013 2014 2015 2016 2017 2018 2019 2020 City Actuarially determined contribution 957,491$ 937,996$ 922,958$ 887,566$ 919,494$ 968,973$ 795,116$ 1,214,739$ Contributions in relation to the actuarially determined contribution 1,068,399 996,715 1,232,864 1,050,988 1,088,795 1,017,042 1,018,167 1,163,771 Contribution deficiency (excess)(110,908)$ (58,719)$ (309,906)$ (163,422)$ (169,301)$ (48,069)$ (223,051)$ 50,968$ Library Actuarially determined contribution 59,435$ 58,225$ 101,725$ 97,824$ 65,896$ 99,913$ 76,357$ 118,307$ Contributions in relation to the actuarially determined contribution 66,320 61,870 135,881 115,836 78,029 104,869 97,778 113,343 Contribution deficiency (excess)(6,885)$ (3,645)$ (34,156)$ (18,012)$ (12,133)$ (4,956)$ (21,421)$ 4,964$ Total Actuarially determined contribution 1,016,926$ 996,221$ 1,024,683$ 985,390$ 985,390$ 1,068,886$ 871,473$ 1,333,046$ Contributions in relation to the actuarially determined contribution 1,134,719 1,058,585 1,368,745 1,166,824 1,166,824 1,121,911 1,115,945 1,277,114 Contribution deficiency (excess)(117,793)$ (62,364)$ (344,062)$ (181,434)$ (181,434)$ (53,025)$ (244,472)$ 55,932$ Covered payroll 7,926,152$ 8,027,563$ 8,024,144$ 8,004,796$ 8,004,796$ 8,116,066$ 8,205,963$ 9,074,515$ Contributions as a percentage of covered payroll 14.32%13.19%17.06%14.58%14.58%13.82%13.60%14.07% Notes to Schedule: Additional years' information will be presented as it becomes available. Valuation date: Actuarially determined contributions are calculated as of December 31 of the prior fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Entry-age Amortization method Level percentage of payroll, closed Remaining amortization period 24 years Asset valuation method 5-year smoothed market, 20% corridor Inflation 2.50% Salary increases 3.35% to 14.25%, including inflation Investment rate of return 7.50% Retirement age Experience-based table of rates that are specific to the type of eligibility condition Mortality RP-2014 CHBCA Other information: There were no benefit changes during the year. The City implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2013 is not available. City of Galesburg, Illinois Illinois Municipal Retirement Fund Schedule of Employer Contributions Last Eight Fiscal Years See notes to required supplementary information 91 2015 2016 2017 2018 2019 2020 Total Pension Liability Service cost 39,545$ 38,846$ 39,565$ 36,130$ 37,441$ 41,784$ Interest Changes of benefit terms 125,673 135,982 147,450 159,334 161,356 167,692 Differences between expected and actual experience (46,822) 57,357 81,275 31,466 32,820 3,258 Changes of assumptions 81,489 2,169 (2,299) (74,508) 57,544 - Benefit payments, including refunds of member contributions (58,570) (65,588) (92,773) (124,101) (128,149) (131,367) Net change in total pension liability 141,315 168,766 173,218 28,321 161,012 81,367 Total Pension Liability, Beginning 1,685,146 1,826,461 1,995,227 2,168,445 2,196,766 2,357,778 Total Pension Liability, Ending 1,826,461$ 1,995,227$ 2,168,445$ 2,196,766$ 2,357,778$ 2,439,145$ Plan Fiduciary Net Position Employer contributions 42,037$ 27,432$ 85,180$ 29,373$ 34,574$ 23,000$ Employee contributions 14,518 15,109 14,754 15,496 17,023 17,279 Net investment income 115,377 9,931 120,744 390,255 (149,226) 427,878 Benefit payments, including refunds of member contributions (58,570) (65,588) (92,773) (124,101) (128,149) (131,367) Other (net transfer)(8,101) 53,387 92,832 (223,039) 49,301 15,559 Net change in plan fiduciary net position 105,261 40,271 220,737 87,984 (176,477) 352,349 Plan Fiduciary Net Position, Beginning 1,892,437 1,997,698 2,037,969 2,258,706 2,346,690 2,170,213 Plan Fiduciary Net Position, Ending 1,997,698$ 2,037,969$ 2,258,706$ 2,346,690$ 2,170,213$ 2,522,562$ City's Net Pension Liability (Asset), Ending (171,237)$ (42,742)$ (90,261)$ (149,924)$ 187,565$ (83,417)$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability (Asset)109.38%102.14%104.16%106.82%92.04%103.42% Covered Payroll 322,617$ 335,770$ 327,860$ 344,345$ 378,277$ 383,980$ City's Net Pension Liability (Asset) as a Percentage of Covered Payroll (53.08)%(12.73)%(27.53)%(43.54)%49.58%(21.72)% City of Galesburg, Illinois Illinois Municipal Retirement Fund - Town of the City of Galesburg Schedule of Changes in the City's Net Pension Liability and Related Ratios Last Six Fiscal Years See notes to required supplementary information 92 2014 2015 2016 2017 2018 2019 Actuarially determined contribution 42,037$ 27,432$ 25,180$ 29,373$ 34,575$ 23,000$ Contributions in relation to the actuarially determined contribution 42,037 27,432 85,180 29,373 34,574 23,000 Contribution deficiency (excess)-$ -$ (60,000)$ -$ 1$ -$ Covered payroll 322,617$ 335,770$ 327,860$ 344,345$ 378,277$ 383,980$ Contributions as a percentage of covered payroll 13.03%8.17%25.98%8.53%9.14%5.99% Notes to Schedule: information will be presented as it becomes available. Fiscal year 2020 information is not available. Valuation date: Actuarially determined contributions are calculated as of December 31 of the prior fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Entry-age Amortization method Level percentage of payroll, closed Remaining amortization period 24 years Asset valuation method 5-year smoothed market, 20% corridor Inflation 2.75% Salary increases 3.35% to 14.25%, including inflation Investment rate of return 7.50% Retirement age Experience-based table of rates that are specific to the type of eligibility condition Mortality RP-2014 CHBCA The City implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2014 is not available. Additional years' Schedule of Employer Contributions Last Six Fiscal Years City of Galesburg, Illinois Illinois Municipal Retirement Fund - Town of the City of Galesburg See notes to required supplementary information 93 2014 2015 2016 2017 2018 2019 2020 Total Pension Liability Service cost 740,298$ 749,291$ 842,309$ 896,385$ 818,991$ 883,167$ 1,121,695$ Interest changes of benefit terms 2,742,481 3,080,281 3,193,581 3,514,250 3,628,841 3,720,839 3,965,432 Differences between expected and actual experience 241,625 3,636,322 (2,001,887) 97,635 49,905 688,209 2,356,363 Changes of assumptions 3,562,950 - 5,293,940 (1,052,662) 1,622,665 8,905,010 5,274,383 Change of benefit terms - - - - - 103,606 - Benefit payments, including refunds of member contributions (2,212,992) (2,615,062) (2,400,732) (2,602,347) (2,804,292) (2,880,141) (3,126,243) Net change in total pension liability 5,074,362 4,850,832 4,927,211 853,261 3,316,110 11,420,690 9,591,630 Total Pension Liability, Beginning 41,014,184 46,088,546 50,939,378 55,866,589 56,719,850 60,035,960 71,456,650 Total Pension Liability, Ending 46,088,546$ 50,939,378$ 55,866,589$ 56,719,850$ 60,035,960$ 71,456,650$ 81,048,280$ Plan Fiduciary Net Position Employer contributions 1,432,332$ 2,264,616$ 1,956,983$ 2,383,891$ 2,199,249$ 2,229,641$ 2,423,797$ Employee contributions 314,238 464,316 326,120 466,106 357,688 332,353 442,514 Net investment income 996,571 (419,932) 1,170,666 2,748,342 (1,608,006) 3,912,366 2,417,041 Benefit payments, including refunds of member contributions (2,212,992) (2,615,062) (2,400,732) (2,602,347) (2,804,292) (2,880,141) (3,126,243) Administration (87,266) (27,329) (24,498) (22,507) (22,577) (22,719) (24,140) Net change in plan fiduciary net position 442,883 (333,391) 1,028,539 2,973,485 (1,877,938) 3,571,500 2,132,969 Plan Fiduciary Net Position, Beginning 23,095,800 23,538,683 23,205,292 24,233,831 27,207,316 25,329,378 28,900,878 Plan Fiduciary Net Position, Ending 23,538,683$ 23,205,292$ 24,233,831$ 27,207,316$ 25,329,378$ 28,900,878$ 31,033,847$ City's Net Pension Liability, Ending 22,549,863$ 27,734,086$ 31,632,758$ 29,512,534$ 34,706,582$ 42,555,772$ 50,014,433$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 51.07%45.55%43.38%47.97%42.19%40.45%38.29% Covered Payroll 3,099,328$ 3,196,939$ 3,155,088$ 3,249,741$ 3,213,880$ 3,340,278$ 3,440,486$ City's Net Pension Liability as a Percentage of Covered Payroll 727.57%867.52%1002.60%908.15%1079.90%1274.02%1453.70% The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Additional years' information will be presented as it becomes available. City of Galesburg, Illinois Police Pension Plan Schedule of Changes in the City's Net Pension Liability and Related Ratios Last Seven Fiscal Years See notes to required supplementary information 94 2011 2012 2013 2014 2015 Actuarially determined contribution 956,592$ 1,455,588$ 1,438,309$ 1,657,194$ 2,294,319$ Contributions in relation to the actuarially determined contribution 994,455 937,749 1,396,761 1,432,332 2,264,616 Contribution deficiency (excess)(37,863)$ 517,839$ 41,548$ 224,862$ 29,703$ Covered payroll 2,910,933$ 3,216,974$ 3,196,108$ 3,099,328$ 3,196,939$ Contributions as a percentage of covered payroll 34.16%29.15%43.70%46.21%70.84% 2016 2017 2018 2019 2020 Actuarially determined contribution 2,650,318$ 2,511,651$ 2,528,343$ 2,780,269$ 2,780,269$ Contributions in relation to the actuarially determined contribution 1,956,983 2,383,891 2,199,249 2,229,641 2,423,797 Contribution deficiency (excess)693,335$ 127,760$ 329,094$ 550,628$ 356,472$ Covered payroll 3,155,088$ 3,249,741$ 3,213,880$ 3,340,278$ 3,440,486$ Contributions as a percentage of covered payroll 62.03%73.36%68.43%66.75%70.45% Valuation date: Actuarially determined contributions are calculated as of December 31 of the prior fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality Mortality rates were based on the RP-2014 Study with Blue Collar Adjustment and Improved Generationally using MP-2016 Improvement Rates Other information: The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. City of Galesburg, Illinois Police Pension Plan Schedule of Employer Contributions Last Ten Fiscal Years Capped at age 65 2.50% 6.75% Entry-Age Normal Level percentage of payroll 18 years 5-year smoothed market 4.00% - 5.03% See notes to required supplementary information 95 2014 2015 2016 2017 2018 2019 2020 Annual money-weighted rate of return, net of investment expense 4.37%(1.68)%4.57%10.67%(6.77)%16.50%8.91% Notes to Schedule: The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Additional years' information will be presented as it becomes available. City of Galesburg, Illinois Police Pension Plan Schedule of Investment Returns Last Seven Fiscal Years See notes to required supplementary information 96 2014 2015 2016 2017 2018 2019 2020 Total Pension Liability Service cost 661,464$ 682,458$ 764,601$ 814,759$ 912,463$ 935,109$ 1,238,084$ Interest changes of benefit terms 2,719,284 2,922,284 2,930,958 3,469,190 3,525,942 3,723,946 3,620,103 Differences between expected and actual experience (850,986) 716,526 (379,449) (47,767) (144,691) 706,327 575,990 Changes of assumptions 3,937,830 - 7,765,648 2,278,343 377,989 7,178,008 2,891,832 Benefit payments, including refunds of member contributions (2,655,288) (2,763,804) (2,875,718) (2,867,506) (2,929,709) (3,085,029) (3,222,012) Net change in total pension liability 3,812,304 1,557,464 8,206,040 3,647,019 1,741,994 9,458,361 5,103,997 Total Pension Liability, Beginning 40,747,439 44,559,810 46,117,274 54,323,314 57,970,333 59,712,327 69,170,688 Total Pension Liability, Ending 44,559,743$ 46,117,274$ 54,323,314$ 57,970,333$ 59,712,327$ 69,170,688$ 74,274,685$ Plan Fiduciary Net Position Employer contributions 1,600,784$ 2,328,400$ 2,096,966$ 2,112,413$ 2,389,691$ 2,522,306$ 2,697,162$ Employee contributions 257,374 289,576 263,295 268,377 276,331 282,177 294,398 Net investment income 932,616 (202,440) 1,161,600 2,597,853 (1,234,318) 3,543,455 3,108,833 Benefit payments, including refunds of member contributions (2,655,288) (2,763,804) (2,875,718) (2,867,506) (2,929,709) (3,085,029) (3,222,012) Administration (25,441) (25,879) (24,462) (23,116) (23,482) (22,427) (24,543) Net change in plan fiduciarynet position 110,045 (374,147) 621,681 2,088,021 (1,521,487) 3,240,482 2,853,838 Plan Fiduciary Net Position, Beginning 21,013,866 21,123,911 20,749,764 21,371,445 23,459,466 21,937,979 25,178,461 Plan Fiduciary Net Position, Ending 21,123,911$ 20,749,764$ 21,371,445$ 23,459,466$ 21,937,979$ 25,178,461$ 28,032,299$ City's Net Pension Liability, Ending 23,435,832$ 25,367,510$ 32,951,869$ 34,510,867$ 37,774,348$ 43,992,227$ 46,242,386$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 47.41%44.99%39.34%40.47%36.74%36.40%37.74% Covered Payroll 2,611,787$ 2,742,445$ 2,719,370$ 2,800,951$ 2,919,494$ 2,984,419$ 3,073,952$ City's Net Pension Liability as a Percentage of Covered Payroll 897%925%1212%1232%1294%1474%1504% The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Additional years' information will be presented as it becomes available. City of Galesburg, Illinois Firefighters' Pension Plan Schedule of Changes in the City's Net Pension Liability and Related Ratios Last Seven Fiscal Years See notes to required supplementary information 97 2011 2012 2013 2014 2015 Actuarially determined contribution 1,342,309$ 1,455,588$ 1,607,765$ 1,708,503$ 2,482,676$ Contributions in relation to the actuarially determined contribution 1,094,227 1,330,584 1,453,831 1,600,784 2,328,400 Contribution deficiency (excess)248,082$ 125,004$ 153,934$ 107,719$ 154,276$ Covered payroll 2,519,815$ 2,799,133$ 2,775,756$ 2,611,787$ 2,742,445$ Contributions as a percentage of covered payroll 43.42%47.54%52.38%61.29%84.90% 2016 2017 2018 2019 2020 Actuarially determined contribution 2,482,676$ 2,734,369$ 2,833,708$ 3,054,249$ 3,054,249$ Contributions in relation to the actuarially determined contribution 2,096,966 2,112,413 2,389,691 2,522,306 2,697,162 Contribution deficiency (excess)385,710$ 621,956$ 444,017$ 531,943$ 357,087$ Covered payroll 2,719,370$ 2,800,951$ 2,919,494$ 2,984,419$ 3,073,952$ Contributions as a percentage of covered payroll 77.11%75.42%81.85%84.52%87.74% Valuation date: Actuarially determined contributions are calculated as of December 31 of the prior fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality Mortality rates were based on the RP-2014 Study with Blue Collar Adjustment and Improved Generationally using MP-2016 Improvement Rates Other information: The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. Capped at age 65 Level percentage of payroll 18 years 5-year smoothed market 2.50% 4.00% - 7.55% 6.75% City of Galesburg, Illinois Firefighters' Pension Plan Schedule of Employer Contributions Last Ten Fiscal Years Entry-Age Normal See notes to required supplementary information 98 2014 2015 2016 2017 2018 2019 2020 Annual money-weighted rate of return, net of investment expense 5.56%(0.58)%5.63%11.59%(5.20)%17.18%11.59% Notes to Schedule: The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Additional years' information will be presented as it becomes available. CITY OF GALESBURG, ILLINOIS Firefighters' Pension Plan Schedule of Investment Returns Last Seven Fiscal Years See notes to required supplementary information 99 2017 2018 2019 2020 Total OPEB Liability Service cost 574,551$ 559,749$ 395,016$ 530,708$ Interest 626,832 511,066 541,415 395,452 Differences between expected and actual experience - (1,446,729) - (299,490) Changes of assumptions 1,302,625 (227,643) 1,201,614 1,796,429 Benefit payments, including refunds of member contributions (1,063,653) (1,006,877) (1,087,427) (837,332) Administration (429) (610) (847) (1,009) Net change in total OPEB liability 1,439,926 (1,611,044) 1,049,771 1,584,758 Total OPEB Liability, Beginning 13,920,078 15,360,004 13,748,960 14,798,731 Total OPEB Liability, Ending 15,360,004$ 13,748,960$ 14,798,731$ 16,383,489$ Plan Fiduciary Net Position Employer contributions 1,190,668$ 1,137,342$ 1,220,587$ 973,397$ Net investment income 106,704 (61,778) 197,562 177,974 Benefit payments, including refunds of member contributions (1,063,653) (1,006,877) (1,087,427) (837,332) Administration (429) (610) (847) (1,009) Net change in plan fiduciary net position 233,290 68,077 329,875 313,030 Plan Fiduciary Net Position, Beginning 698,934 932,224 1,000,301 1,330,176 Plan Fiduciary Net Position, Ending 932,224$ 1,000,301$ 1,330,176$ 1,643,206$ City's Net OPEB Liability, Ending 14,427,780$ 12,748,659$ 13,468,555$ 14,740,283$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 6.07%7.28%8.99%10.03% Covered Payroll 13,860,508$ 14,062,479$ 14,554,666$ 15,768,309$ City's Net OPEB Liability as a Percentage of Covered Payroll 104.09%90.66%92.54%93.48% Notes To Schedule: The City implemented GASB Statement No. 75 in fiscal year 2018. Information prior to fiscal year 2017 is not available. City of Galesburg, Illinois Other Postemployment Benefit Plan Schedule of Changes in the City's Net OPEB Liability and Related Ratios Last Four Fiscal Years See notes to required supplementary information 100 2011 2012 2013 2014 2015 Actuarially determined contribution 668,351$ 803,479$ 1,167,256$ 1,167,256$ 1,039,995$ Contributions in relation to the actuarially determined contribution 515,902 627,391 1,420,787 1,548,657 944,242 Contribution deficiency (excess)152,449$ 176,088$ (253,531)$ (381,401)$ 95,753$ Covered payroll N/A 14,134,413$ 13,833,624$ 14,317,802$ 14,317,373$ Contributions as a percentage of covered payroll N/A 4.44%10.27%10.82%6.60% 2016 2017 2018 2019 2020 Actuarially determined contribution 1,039,995$ 1,254,235$ 1,095,487$ 1,087,427$ 837,332$ Contributions in relation to the actuarially determined contribution 1,024,503 1,190,668 1,137,342 1,220,587 973,397 Contribution deficiency (excess)15,492$ 63,567$ (41,855)$ (133,160)$ (136,065)$ Covered payroll 14,818,481$ 13,860,508$ 14,062,479$ 14,554,666$ 15,768,309$ Contributions as a percentage of covered payroll 6.91%8.59%8.09%8.39%6.17% Notes to Schedule Covered payroll was not available prior to fiscal year 2012. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases 3.50% Investment rate of return 4.25% Future medical plan participation 50% of Library, Township, and City Assessor employees; 100% of all other employees Healthcare cost trend rates 7.5% initial, decreasing in increments of 0.5% annually to an ultimate rate of 4.0% for 2028 and after Mortality RP-2014 Blue Collar base rates projected to 2020 using scale MP2020 for Police and Fire participants; RP-2014 base rates projected to 2020 using scale MP2020 for other participants Level percentage of payroll, closed 30 years Market value 2.50% City of Galesburg, Illinois Other Postemployment Benefit Plan Schedule of Employer Contributions Last Ten Fiscal Years Entry-age normal See notes to required supplementary information 101 2017 2018 2019 2020 Annual money-weighted rate of return, net of investment expense 15.33%(6.39)%16.95%11.97% Notes to Schedule: The Plan implemented GASB Statement No. 74 in fiscal year 2017. Information prior to fiscal year 2017 is not available. City of Galesburg, Illinois Other Postemployment Benefit Plan Schedule of Investment Returns Last Four Fiscal Years See notes to required supplementary information 102 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property taxes 7,860,555$ 7,840,940$ 7,840,943$ 3$ Other taxes 4,835,250 5,177,660 5,152,248 (25,412) Intergovernmental 9,432,190 11,444,615 11,471,906 27,291 Licenses and permits 351,425 300,810 299,889 (921) Charges for services 965,530 976,960 989,621 12,661 Fines and fees 356,075 311,115 322,215 11,100 Use of money and property 575,490 575,015 575,479 464 Miscellaneous 24,050 24,050 26,876 2,826 Total revenues 24,400,565 26,651,165 26,679,177 28,012 Expenditures Mayor and city council 114,795 115,360 115,357 3 City manager 250,660 288,530 288,526 4 Legal 198,240 244,755 244,752 3 Human resources and benefits 227,155 227,155 207,255 19,900 City clerk 348,675 355,630 355,628 2 Management information systems 459,585 459,585 396,614 62,971 Finance 817,125 823,805 823,798 7 Planning 135,495 135,495 121,698 13,797 Fire and police commission 13,975 20,990 20,987 3 Contracts and subsidies 1,295,940 1,411,270 1,177,429 233,841 Police department 7,247,445 7,265,415 7,253,991 11,424 School crossing guards 67,130 67,130 17,893 49,237 Communications and records 1,966,660 2,011,845 2,011,842 3 Fire department 7,329,890 7,347,275 7,211,437 135,838 Emergency services 33,110 33,110 13,451 19,659 Inspection 726,710 726,710 715,120 11,590 Engineering 668,070 668,070 634,036 34,034 Motor pool, central garage 503,210 503,210 487,631 15,579 Street and bridge maintenance 1,144,165 1,144,165 1,137,795 6,370 Total expenditures 23,548,035 23,849,505 23,235,240 614,265 Excess (deficiency) of revenue over expenditures 852,530 2,801,660 3,443,937 642,277 Other Financing Sources (Uses) Proceeds from the sale of assets 7,500 14,500 14,526 26 Transfers in - 65 62 3 Transfers out (1,805,780) (1,690,450) (1,634,272) 56,178 Total other financing sources (uses)(1,798,280) (1,675,885) (1,619,684) 56,207 Net change in fund balance (945,750)$ 1,125,775$ 1,824,253 698,478$ Fund Balances, Beginning of Year 10,104,879 Fund Balances, End of Year 11,929,132$ Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund City of Galesburg, Illinois Required Supplementary Information Year Ended December 31, 2020 See notes to required supplementary information 103 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Other taxes 922,500$ 940,500$ 941,019$ 519$ Intergovernmental - 50,000 50,400 400 Use of money and property 96,185 83,785 95,741 11,956 Total revenues 1,018,685 1,074,285 1,087,160 12,875 Expenditures Current: Economic development 707,310 727,440 462,691 264,749 Miscellaneous 2,019,205 1,980,375 80,579 1,899,796 Total expenditures 2,726,515 2,707,815 543,270 2,164,545 Excess (deficiency) of revenue over expenditures (1,707,830) (1,633,530) 543,890 2,177,420 Other Financing Sources (Uses) Transfers in 200,000 216,600 16,609 199,991 Transfers out (405,445) (424,145) (363,175) 60,970 Total other financing sources (uses)(205,445) (207,545) (346,566) (139,021) Net change in fund balance (1,913,275)$ (1,841,075)$ 197,324 2,038,399$ Fund Balances, Beginning 11,201,094 Fund Balances, Ending 11,398,418$ City of Galesburg, Illinois Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Economic Development - Major Special Revenue Fund Year Ended December 31, 2020 See notes to required supplementary information 104 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property 168,430$ 168,430$ 168,164$ (266)$ Other taxes 1,676,890 1,437,930 1,439,047 1,117 Intergovernmental 1,640,545 1,769,485 1,777,354 7,869 Charges for services 33,300 44,300 44,299 (1) Use of money and property 957,250 678,340 671,553 (6,787) Miscellaneous 25,675 53,675 53,119 (556) Total revenues 4,502,090 4,152,160 4,153,536 1,376 Expenditures Buildings and grounds operations, public 125,830 125,830 121,748 4,082 Buildings and grounds operations 172,620 185,090 185,113 (23) Forestry 272,715 272,715 180,645 92,070 Maintenance of Linwood Cemetery 190,740 190,740 136,260 54,480 Lake Storey pavilion 91,990 91,990 48,918 43,072 Lakeside waterpark 219,635 230,430 35,307 195,123 Hawthorne pool 112,870 112,870 80,893 31,977 Recreation special programs 272,335 272,335 92,104 180,231 Hawthorne gymnasium 21,975 21,975 11,955 10,020 Lakeside recreation facility 70,250 70,250 42,318 27,932 Lake Storey beach 27,600 27,600 27,560 40 Golf course 607,940 607,940 528,282 79,658 Recreation administration 2,156,660 2,143,155 1,783,320 359,835 Park operation and maintenance 415,420 415,420 288,891 126,529 Allison Campground 52,100 53,225 53,223 2 Total expenditures 4,810,680 4,821,565 3,616,537 1,205,028 Excess (deficiency) of revenue Over expenditures (308,590) (669,405) 536,999 1,206,404 Other Financing Sources (Uses) Transfers in 17,000 10,605 10,092 (513) Transfers out (490,645) (504,150) (504,149) 1 Total other financing sources (uses)(473,645) (493,545) (494,057) (512) Net change in fund balance (782,235)$ (1,162,950)$ 42,942 1,205,892$ Fund Balances, Beginning 1,987,752 Fund Balances, Ending 2,030,694$ City of Galesburg, Illinois Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Parks and Recreation Fund - Major Special Revenue Fund Year Ended December 31, 2020 See notes to required supplementary information 105 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 1,623,530$ 1,018,530$ 1,019,604$ 1,074$ Use of money and property 28,060 16,760 15,705 (1,055) Contributions - 87,000 87,095 95 Total revenues 1,651,590 1,122,290 1,122,404 114 Expenditures Current: General government 1,994,475 2,041,085 2,017,618 23,467 Total expenditures 1,994,475 2,041,085 2,017,618 23,467 Excess (deficiency) of revenues over expenditures (342,885) (918,795) (895,214) 23,581 Other Financing Sources Transfers in 290,000 290,000 273,643 (16,357) Total other financing sources 290,000 290,000 273,643 (16,357) Net change in fund balances (52,885)$ (628,795)$ (621,571) 7,224$ Fund Balance (Deficit), Beginning (477,747) Fund Balance (Deficit), Ending (1,099,318)$ City of Galesburg, Illinois Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Public Transportation Fund - Major Special Revenue Fund Year Ended December 31, 2020 City of Galesburg, Illinois Notes to Required Supplementary Information Year Ended December 31, 2020 Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. Budget amounts are as originally adopted by the City Council. All annual appropriations lapse at fiscal year end. In October and November, the Finance Director submits to the City Council a proposed operating budget for the fiscal year commencing January 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to December 31, the budget is legally approved by City Council. Formal budgetary integration is employed as a management control device during the year of the general fund and special revenue funds. The City is authorized to change budgeted amounts within any fund; however, revision must be approved by the City Council. No revisions can be made increasing the budget unless funding is available for the purpose of the revision. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the division level for the General Fund and the fund level for other funds. The appropriated budget is prepared by fund, function, department and division. Line items may exceed budgeted amounts if the budget for the division is equal to or less than the budget amount approved by the City Council. The City Council must approve revisions that alter the total expenditures of any fund. 106 S U PL E M E N T A R Y I N F O R M A T I O N 107 2013A GO 2016 GO Federal State Public Town of the 2011C Bonds Bonds City Motor Special Special Stormwater Foreign Property Transportation 911 City of Business Business Debt Gas Tax Fuel Tax Enforcement Enforcement Utility Fire Grants Airport Redevelopment Projects Communication Galesburg Park District Service Assets Cash and cash equivalents 1,592,664$ 2,301,599$ 1$ 580,796$ 531,853$ 129,895$ 45,955$ 11,777$ 1,081,428$ 132,045$ -$ 1,360,362$ -$ -$ -$ Investments - - - - - - - - - - - -- - - Receivables: Property taxes - - - - - - - - - - - 531,000 - - - Other taxes - - - - - - - 200 - - - - - - - Accounts 55,609 - - 25 67,153 - - 4,825 58,125 9,320 11,589 12,945 950 167,612 - Accrued interest 382 - - - - - - - - - - - - - - Due from other governments - 200,034 - - - - 567,435 - - 630 - - - - - Due from other funds - - - - - - - 87,989 3,369 - - - - - - Prepaid items 1,219 - - 333 3,489 - - 1,050 1,481 1,440 716 10,273 - - - Property held for resale - - - - - - - - 116,047 - - - - - - Advances to other funds - - - - - - - - - - - - - - - Total assets 1,649,874$ 2,501,633$ 1$ 581,154$ 602,495$ 129,895$ 613,390$ 105,841$ 1,260,450$ 143,435$ 12,305$ 1,914,580$ 950$ 167,612$ -$ Liabilities, Deferred Inflows of Resources, and Fund Balances (Deficits) Liabilities Accounts payable 54,747$ 166,642$ -$ 39,435$ 57,287$ 765$ 676,768$ 100,531$ 116,027$ -$ -$ 804$ -$ -$ -$ Accrued liabilities 1,297 - - - 5,167 - - 898 303 - 762 1,767 1,150 - - Due to other governments - - - 963 - - - - - - - - - - - Due to other funds - - - - - - 446 - - - 11,543 - - 266,377 - Advances from other funds - - - - - - - - - - - - - - - Unearned revenue - - 1 - - - 9,665 4,340 71,610 1,440 - 4,125 - 474 - Total liabilities 56,044 166,642 1 40,398 62,454 765 686,879 105,769 187,940 1,440 12,305 6,696 1,150 266,851 - Deferred Inflows of Resources Unavailable revenue 2,143 - - - - - 27,617 72 - 630 - - - 179,887 - Property taxes levied for future periods - - - - - - - - - - - 531,000 - - - Total deferred inflows of resources 2,143 - - - - - 27,617 72 - 630 - 531,000 - 179,887 - Fund Balances (Deficits) Nonspendable 1,219 - - 333 3,489 - - - 1,481 1,440 - 10,273 - - - Restricted - 2,334,991 - 540,423 536,552 129,130 - - - 139,925 - 1,366,611 - - - Committed 1,590,468 - - - - - - - 1,071,029 - - - - - - Assigned - - - - - - - - - - - - - - - Unassigned - - - - - - (101,106) - - - - - (200) (279,126) - Total fund balances (deficits)1,591,687 2,334,991 - 540,756 540,041 129,130 (101,106) - 1,072,510 141,365 - 1,376,884 (200) (279,126) - Total liabilities, deferred inflows of resources, and fund balances (deficits)1,649,874$ 2,501,633$ 1$ 581,154$ 602,495$ 129,895$ 613,390$ 105,841$ 1,260,450$ 143,435$ 12,305$ 1,914,580$ 950$ 167,612$ -$ Special Revenue Funds City of Galesburg, Illinois Nonmajor Governmental Funds Combining Balance Sheet December 31, 2020 Debt Service Funds 108 TIF 3 2016 GO 2013A Utility Tax Regency Building East Total Capital Business Capital Capital Repair &TIF TIF Computer Vehicle Players Capital Linwood Linwood Nonmajor Improvement District Projects Project Maintenance Downtown East Main Replacement Replacement Fields Planning TIF IV TIF V Cemetery Cemetery Funds Assets Cash and cash equivalents -$ -$ 741,361$ 6,588$ 3,701,657$ 151,939$ 494,330$ 1,267,481$ 3,638,220$ 19,196$ 255,829$ 529,251$ 19,158$ 3,807$ 43,332$ 18,640,524$ Investments - - - - - - - - - - - - - 82,266 479,516 561,782 Receivables: Property taxes - - - 76,350 - 227,290 511,000 - - - - 352,240 7,040 - - 1,704,920 Other taxes - 8,711 - - - - - - - - - - - - - 8,911 Accounts - - 134,491 - 262 - - - - - - - - - - 522,906 Accrued interest - - 62 - 4,093 - - 217 528 - - - - - - 5,282 Due from other governments - - - - - - - - 6,000 - - - - - - 774,099 Due from other funds - - - - - - - - - - - - - - - 91,358 Prepaid items - - - - - - - - - - - - - - - 20,001 Property held for resale - - - - - 178,781 69,984 - - - - - - - - 364,812 Advances to other funds - - - - - - - 157,000 157,000 - - - - - - 314,000 Total assets -$ 8,711$ 875,914$ 82,938$ 3,706,012$ 558,010$ 1,075,314$ 1,424,698$ 3,801,748$ 19,196$ 255,829$ 881,491$ 26,198$ 86,073$ 522,848$ 23,008,595$ Liabilities, Deferred Inflows of Resources, and Fund Balances (Deficits) Liabilities Accounts payable -$ -$ 228,060$ -$ 284,614$ -$ -$ 2,168$ 28,484$ -$ 5,800$ 13,493$ -$ -$ -$ 1,775,625$ Accrued liabilities - - - - - - - - - - - - - - - 11,344 Due to other governments - - - - - - - - - - - - - - - 963 Due to other funds - - - - - - - - - - 82 - - - - 278,448 Advances from other funds - - 785,000 447,170 - - - - - - - - - - - 1,232,170 Unearned revenue - - - - - - - - - - - - - - - 91,655 Total liabilities - - 1,013,060 447,170 284,614 - - 2,168 28,484 - 5,882 13,493 - - - 3,390,205 Deferred Inflows of Resources Unavailable revenue - 2,824 - - - - - - - - - - - - - 213,173 Property taxes levied for future periods - - - 76,350 - 227,290 511,000 - - - - 352,240 7,040 - - 1,704,920 Total deferred inflows of resources - 2,824 - 76,350 - 227,290 511,000 - - - - 352,240 7,040 - - 1,918,093 Fund Balances (Deficits) Nonspendable - - - - - - - - - - - - - 82,266 479,516 580,017 Restricted - 5,887 - - 18,038 330,720 564,314 - - - - 515,758 19,158 3,807 43,332 6,548,646 Committed - - - - 489,269 - - - - - - - - - - 3,150,766 Assigned - - - - 2,914,091 - - 1,422,530 3,773,264 19,196 249,947 - - - - 8,379,028 Unassigned - - (137,146) (440,582) - - - - - - - - - - - (958,160) Total fund balances (deficits)- 5,887 (137,146) (440,582) 3,421,398 330,720 564,314 1,422,530 3,773,264 19,196 249,947 515,758 19,158 86,073 522,848 17,700,297 Total liabilities, deferred inflows of resources, and fund balances (deficits)-$ 8,711$ 875,914$ 82,938$ 3,706,012$ 558,010$ 1,075,314$ 1,424,698$ 3,801,748$ 19,196$ 255,829$ 881,491$ 26,198$ 86,073$ 522,848$ 23,008,595$ Capital Projects Funds City of Galesburg, Illinois Nonmajor Governmental Funds Combining Balance Sheet (Continued) December 31, 2020 Permanent Funds 109 2013A GO 2016 GO Federal State Public Town of the 2011C Bonds Bond City Motor Special Special Stormwater Foreign Property Transportation 911 City of Business Business Debt Gas Tax Fuel Tax Enforcement Enforcement Utility Fire Grants Airport Redevelopment Projects Communication Galesburg Park District Service Revenues Taxes 632,626$ -$ -$ -$ 722,017$ -$ -$ 2,068$ -$ -$ -$ 510,298$ -$ -$ -$ Charges for services 117 - - - - - - 30 283,199 - - 24,000 - - - Intergovernmental - 1,918,269 3,042 18,890 2,225 54,577 3,571,211 30,000 - 36,448 60,347 66,580 - - - Fines and fees - - - 7,195 - - - - - - - - - - - Use of money and property 28,920 6,946 7 4,042 3,601 593 - 180,579 5,777 566 - 8,192 87,607 (45,660) 57 Contributions - - - 11,000 - - - - - - - - - - - Miscellaneous - - - 3,998 - - - - 50,991 - - 41,315 - 11,725 - Total revenues 661,663 1,925,215 3,049 45,125 727,843 55,170 3,571,211 212,677 339,967 37,014 60,347 650,385 87,607 (33,935) 57 Expenditures Current: General government 727,177 - - - - - 118,859 259,566 - 30,008 - 679,641 676 - - Economic development - - - - - - - - 472,821 - - - - 38,124 - Public safety - - 3,049 77,211 - 47,789 353,771 - - - 60,386 - - - - Public works - 970,304 - - 497,475 - - - - - - - - - - Miscellaneous - - - - - - 2,553,807 - - - - - - - - Debt service: Principal - - - - - - - - - - - - 265,000 60,000 385,000 Interest and fiscal charges - - - - - - - - - - - - 49,793 48,806 253,657 Capital outlay 781,155 - - - 95,264 - 488,247 - - - - 12,287 - - - Total expenditures 1,508,332 970,304 3,049 77,211 592,739 47,789 3,514,684 259,566 472,821 30,008 60,386 691,928 315,469 146,930 638,657 Excess (deficiency) of revenues over expenditures (846,669) 954,911 - (32,086) 135,104 7,381 56,527 (46,889) (132,854) 7,006 (39) (41,543) (227,862) (180,865) (638,600) Other Financing Sources (Uses) Transfers in - - - - - - - 87,989 212,500 - - - 227,617 51,514 638,600 Transfers out - - - - (91,380) - - (41,100) - - - - - - - Total other financing sources (uses)- - - - (91,380) - - 46,889 212,500 - - - 227,617 51,514 638,600 Net change in fund balances (846,669) 954,911 - (32,086) 43,724 7,381 56,527 - 79,646 7,006 (39) (41,543) (245) (129,351) - Fund Balances (Deficits), Beginning 2,438,356 1,380,080 - 572,842 496,317 121,749 (157,633) - 992,864 134,359 39 1,418,427 45 (149,775) - Fund Balances (Deficits), Ending 1,591,687$ 2,334,991$ -$ 540,756$ 540,041$ 129,130$ (101,106)$ -$ 1,072,510$ 141,365$ -$ 1,376,884$ (200)$ (279,126)$ -$ Debt Service Funds City of Galesburg, Illinois Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2020 Special Revenue Funds 110 TIF 3 2016 GO 2013A Utility Tax Regency Building East Total Capital Business Capital Capital Repair &TIF TIF Computer Vehicle Players Capital Linwood Linwood Nonmajor Improvement District Projects Project Maintenance Downtown East Main Replacement Replacement Fields Planning TIF IV TIF V Cemetery Cemetery Funds Revenues Taxes -$ 29,153$ 1,433,265$ 75,597$ -$ 218,365$ 495,880$ -$ -$ -$ -$ 338,167$ 6,979$ -$ -$ 4,464,415$ Charges for services - - - - - - - - - - - - - - - 307,346 Intergovernmental - - - - - - - - - - - - - - - 5,761,589 Fines and fees - - - - - - - - - - - - - - - 7,195 Use of money and property - 48 13,011 72 31,711 442 1,590 11,577 34,280 4,434 - 3,668 63 8,906 51,689 442,718 Contributions - - 10,000 - - - - - - - - - - - - 21,000 Miscellaneous - - - - 93,025 - - - 12,000 - - 690 - - 21,100 234,844 Total revenues - 29,201 1,456,276 75,669 124,736 218,807 497,470 11,577 46,280 4,434 - 342,525 7,042 8,906 72,789 11,239,107 Expenditures Current: General government - - 613,885 - - - - 348,981 58,039 - - - - 895 5,208 2,842,935 Economic development - - - - - 155,605 345 - - - - 447,866 - - - 1,114,761 Public safety - - - - - - - - - - - - - - - 542,206 Public works 21,750 - - - 229,535 - - - - - - - - - - 1,719,064 Miscellaneous - - - 13,153 - - 168,830 - - - - 165,937 1,000 - - 2,902,727 Debt service: Principal - - - - - - - - - - - - - - - 710,000 Interest and fiscal charges - - 9,603 - - - - - - - - - - - - 361,859 Capital outlay - - 284,712 - 1,270,016 - - - 636,148 - - 264,748 - - - 3,832,577 Total expenditures 21,750 - 908,200 13,153 1,499,551 155,605 169,175 348,981 694,187 - - 878,551 1,000 895 5,208 14,026,129 Excess (deficiency) of revenues over expenditures (21,750) 29,201 548,076 62,516 (1,374,815) 63,202 328,295 (337,404) (647,907) 4,434 - (536,026) 6,042 8,011 67,581 (2,787,022) Other Financing Sources (Uses) Transfers in - - - - 1,655,160 - - 287,520 1,032,180 - 250,000 191,847 - - - 4,634,927 Transfers out - (28,456) (2,070,800) - - - (191,847) - - - (62) - - (1,484) (8,608) (2,433,737) Total other financing sources (uses)- (28,456) (2,070,800) - 1,655,160 - (191,847) 287,520 1,032,180 - 249,938 191,847 - (1,484) (8,608) 2,201,190 Net change in fund balances (21,750) 745 (1,522,724) 62,516 280,345 63,202 136,448 (49,884) 384,273 4,434 249,938 (344,179) 6,042 6,527 58,973 (585,832) Fund Balances (Deficits), Beginning 21,750 5,142 1,385,578 (503,098) 3,141,053 267,518 427,866 1,472,414 3,388,991 14,762 9 859,937 13,116 79,546 463,875 18,286,129 Fund Balances (Deficits), Ending -$ 5,887$ (137,146)$ (440,582)$ 3,421,398$ 330,720$ 564,314$ 1,422,530$ 3,773,264$ 19,196$ 249,947$ 515,758$ 19,158$ 86,073$ 522,848$ 17,700,297$ Capital Projects Funds Permanent Funds City of Galesburg, Illinois Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Year Ended December 31, 2020 City of Galesburg, Illinois Nonmajor Governmental Funds December 31, 2020 Special Revenue Funds City Gas Tax Fund -To account for the four and one-half cent per gallon local gasoline tax used to help finance improvements made to local roads and streets. Motor Fuel Tax Fund -To account for the revenue and expenditures related to projects financed by the state gasoline tax collected and distributed by the State of Illinois. Federal Special Enforcement Fund -To account for the revenue and expenditures related to the forfeited assets received from the federal government and used for law enforcement purposes. State Special Enforcement Fund -To account for the revenue and expenditures related to the forfeited assets received from the State and used for law enforcement purposes. Stormwater Utility Fund -To account for the revenues and expenditures related to the stormwater management program. Foreign Fire Fund -To account for revenue and expenditures related to the foreign fire insurance board. Grants Fund -To account for grant funds. Airport Fund -To account for airport funds. Property Redevelopment Fund -To account for funds from the sale of surplus City-owned properties which can be used to provide a source of funding for property redevelopment efforts. Public Transportation Projects Fund -To account for revenues and expenditures associated with capital projects and maintenance of the City's public transportation systems. 911 Communications Fund -To account for the services of the County-wide enhanced emergency telephone sys tem operated by the Galesburg Police Department staff and services division. Town of the City of Galesburg Fund -To account for the services provided by the City's blended component unit, the Town of the City of Galesburg. Debt Service Funds 2011C Business Park Fund -To account for servicing the refunding of the 2003 series bonds. 2013A GO Bonds Business District Fund -To account for servicing of the 2013A series general obligation bonds. 2016 GO Bond Debt Service Fund -To account for servicing of the 2016 series general obligation bonds. City of Galesburg, Illinois Nonmajor Governmental Funds December 31, 2020 Capital Projects Funds 2016 GO Capital Improvement Fund -To account for the use of bond proceeds and capital project expenditures associated with the 2016 General Obligation bonds. 2013A Business District Fund -To account for the use of proceeds from the 2013A series general obligation bonds for projects within the business district. Utility Tax Capital Projects Fund -To account for the use of proceeds from the electric and natural gas utility tax to fund capital improvements and infrastructure. TIF 3 Regency Capital Project Fund -To account for the revenue and expenditures related to the Regency Tax Increment Financing District. Building Repair and Maintenance Fund -To account for the repair and maintenance of major City-owned building components. TIF Downtown Fund -To account for the revenue and expenditures related to the Downtown Tax Increment Financing District. TIF East Main Fund -To account for the revenue and expenditures related to the East Main Tax Increment Financing District. Computer Replacement Fund -To account for the upgrade and replacement of all City computer hardware and software. Vehicle Replacement Fund -To account for the upgrade and replacement of all City vehicles. Players Fields Fund -To account for the repair and maintenance of player fields. Capital Planning Fund -This fund was established for the purpose of achieving high-im pact, quality of life, or economic development pursuits that will further stabilize the City's revenue sources. TIF IV Fund -To account for the revenue and expenditures related to the central business district as well as East Main Street from the downtown to Chestnut Street. TIF V Fund -To account for the revenue and expenditures related to a small area located east of Interstate 74 along East Main Street. Permanent Funds Linwood Cemetery Fund -To account for the assets and trust earnings used to support the operation and maintenance of the Linwood Cemetery. East Linwood Cemetery Fund -To account for the assets and trust earnings used to support the operation and maintenance of the East Linwood Cemetery. 111 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Other taxes 725,000$ 632,625$ 632,626$ 1$ Charges for services - - 117 117 Use of money and property 30,000 29,000 28,920 (80) Total revenues 755,000 661,625 661,663 38 Expenditures Current: General government 856,575 915,705 727,177 188,528 Capital Outlay 1,258,145 1,487,590 781,155 706,435 Total expenditures 2,114,720 2,403,295 1,508,332 894,963 Net change in fund balance (1,359,720)$ (1,741,670)$ (846,669) 895,001$ Fund Balances, Beginning 2,438,356 Fund Balances, Ending 1,591,687$ Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual City of Galesburg, Illinois City Gas Tax Fund Year Ended December 31, 2020 112 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 1,102,500$ 1,912,500$ 1,918,269$ 5,769$ Use of money and property 20,000 7,000 6,946 (54) Total revenues 1,122,500 1,919,500 1,925,215 5,715 Expenditures Current: Public works 1,195,000 1,203,840 970,304 233,536 Capital outlay 400,000 520,520 - 520,520 Total expenditures 1,595,000 1,724,360 970,304 754,056 Net change in fund balances (472,500)$ 195,140$ 954,911 759,771$ Fund Balance, Beginning 1,380,080 Fund Balance, Ending 2,334,991$ City of Galesburg, Illinois Motor Fuel Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 113 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental -$ 3,000$ 3,042$ 42$ Use of money and property - - 7 7 Total revenues - 3,000 3,049 49 Expenditures Current: Public safety - 3,050 3,049 1 Total expenditures - 3,050 3,049 1 Net change in fund balances -$ (50)$ - 50$ Fund Balance, Beginning - Fund Balance, Ending -$ City of Galesburg, Illinois Federal Special Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 114 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 38,180$ 18,890$ 18,890$ -$ Fines and fees 12,000 7,195 7,195 - Use of money and property 2,000 4,000 4,042 42 Contributions - 11,000 11,000 - Miscellaneous 2,000 4,000 3,998 (2) Total revenues 54,180 45,085 45,125 40 Expenditures Current: Public safety 67,835 105,850 77,211 28,639 Total expenditures 67,835 105,850 77,211 28,639 Net change in fund balances (13,655)$ (60,765)$ (32,086) 28,679$ Fund Balance, Beginning 572,842 Fund Balance, Ending 540,756$ City of Galesburg, Illinois State Special Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 115 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 770,880$ 722,020$ 722,017$ (3)$ Intergovernmental 1,055 1,055 2,225 1,170 Use of money and property 5,000 3,485 3,601 116 Total revenues 776,935 726,560 727,843 1,283 Expenditures Current: Public works 494,830 539,790 497,475 42,315 Capital outlay 300,000 255,040 95,264 159,776 Total expenditures 794,830 794,830 592,739 202,091 Excess (deficiency) of revenues over expenditures (17,895) (68,270) 135,104 203,374 Other Financing Uses Transfers out - (91,380) (91,380) - Total other financing uses - (91,380) (91,380) - Net change in fund balances (17,895)$ (159,650)$ 43,724 203,374$ Fund Balance, Beginning 496,317 Fund Balance, Ending 540,041$ City of Galesburg, Illinois Stormwater Utility Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 116 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 45,000$ 54,500$ 54,577$ 77$ Use of money and property - - 593 593 Total revenues 45,000 54,500 55,170 670 Expenditures Current: Public safety 45,000 60,230 47,789 12,441 Total expenditures 45,000 60,230 47,789 12,441 Net change in fund balances -$ (5,730)$ 7,381 13,111$ Fund Balance, Beginning 121,749 Fund Balance, Ending 129,130$ City of Galesburg, Illinois Foreign Fire Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 117 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 4,461,420$ 3,428,450$ 3,571,211$ 142,761$ Total revenues 4,461,420 3,428,450 3,571,211 142,761 Expenditures Current: General government - 118,865 118,859 6 Public safety 439,150 471,670 353,771 117,899 Miscellaneous 3,636,115 4,416,800 2,553,807 1,862,993 Capital outlay 455,355 532,565 488,247 44,318 Total expenditures 4,530,620 5,539,900 3,514,684 2,025,216 Net change in fund balances (69,200)$ (2,111,450)$ 56,527 2,167,977$ Fund Balance (Deficit), Beginning (157,633) Fund Balance (Deficit), Ending (101,106)$ City of Galesburg, Illinois Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 118 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes -$ 2,000$ 2,068$ 68$ Charges for services - - 30 30 Intergovernmental - 30,000 30,000 - Use of money and property 200,590 179,010 180,579 1,569 Total revenues 200,590 211,010 212,677 1,667 Expenditures Current: General government 233,975 259,565 259,566 (1) Total expenditures 233,975 259,565 259,566 (1) Excess (deficiency) of revenues over expenditures (33,385) (48,555) (46,889) 1,666 Other Financing Sources (Uses) Transfers in 74,485 87,985 87,989 (4) Transfers out (41,100) (41,100) (41,100) - Total other financing sources (uses)33,385 46,885 46,889 (4) Net change in fund balances -$ (1,670)$ - 1,670$ Fund Balance, Beginning - Fund Balance, Ending -$ City of Galesburg, Illinois Airport Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 119 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Charges for services 337,500$ 283,195$ 283,199$ 4$ Use of money and property 2,220 2,220 5,777 3,557 Miscellaneous - 50,800 50,991 191 Total revenues 339,720 336,215 339,967 3,752 Expenditures Current: General government 877,155 978,895 472,821 506,074 Total expenditures 877,155 978,895 472,821 506,074 Excess (deficiency) of revenues over expenditures (537,435) (642,680) (132,854) 509,826 Other Financing Sources Transfers in 634,260 213,260 212,500 760 Total other financing sources 634,260 213,260 212,500 760 Net change in fund balances 96,825$ (429,420)$ 79,646 509,066$ Fund Balance, Beginning 992,864 Fund Balance, Ending 1,072,510$ City of Galesburg, Illinois Property Redevelopment Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 120 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental -$ 36,300$ 36,448$ 148$ Use of money and property - - 566 566 Total revenues - 36,300 37,014 714 Expenditures Current: General government - 30,010 30,008 2 Total expenditures - 30,010 30,008 2 Net change in fund balances -$ 6,290$ 7,006 716$ Fund Balance, Beginning 134,359 Fund Balance, Ending 141,365$ City of Galesburg, Illinois Public Transportation Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 121 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 68,345$ 60,345$ 60,347$ 2$ Total revenues 68,345 60,345 60,347 2 Expenditures Current: Public safety 68,345 79,780 60,386 19,394 Total expenditures 68,345 79,780 60,386 19,394 Net change in fund balances -$ (19,435)$ (39) 19,396$ Fund Balance, Beginning 39 Fund Balance, Ending -$ City of Galesburg, Illinois 911 Communication Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 122 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 511,000$ 511,000$ 510,298$ (702)$ Charges for services 24,000 24,000 24,000 - Intergovernmental 60,000 60,000 66,580 6,580 Use of money and property 23,350 23,350 8,192 (15,158) Miscellaneous - - 41,315 41,315 Total revenues 618,350 618,350 650,385 32,035 Expenditures Current: General government 985,722 985,722 679,641 306,081 Capital outlay 22,000 22,000 12,287 9,713 Total expenditures 1,007,722 1,007,722 691,928 315,794 Net change in fund balances (389,372)$ (389,372)$ (41,543) 347,829$ Fund Balance, Beginning 1,418,427 Fund Balance, Ending 1,376,884$ City of Galesburg, Illinois Town of the City of Galesburg Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 123 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 89,015$ 87,615$ 87,607$ (8)$ Total revenues 89,015 87,615 87,607 (8) Expenditures Current: General government 700 700 676 24 Debt Service: Principal 265,000 265,000 265,000 - Interest and fiscal charges 49,795 49,795 49,793 2 Total expenditures 315,495 315,495 315,469 26 Excess (deficiency) of revenues over expenditures (226,480) (227,880) (227,862) 18 Other Financing Sources Transfers in 315,495 227,595 227,617 22 Total other financing sources 315,495 227,595 227,617 22 Net change in fund balances 89,015$ (285)$ (245) 40$ Fund Balance, Beginning 45 Fund Balance (Deficit), Ending (200)$ City of Galesburg, Illinois 2011C Business Park Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 124 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property -$ (46,405)$ (45,660)$ 745$ Miscellaneous - 11,000 11,725 725 Total revenues - (35,405) (33,935) 1,470 Expenditures Current: Economic development - 38,115 38,124 (9) Debt Service: Principal 60,000 60,000 60,000 - Interest and fiscal charges 49,080 48,810 48,806 4 Total expenditures 109,080 146,925 146,930 (5) Excess (deficiency) of revenues over expenditures (109,080) (182,330) (180,865) 1,465 Other Financing Sources Transfers in 109,080 51,465 51,514 49 Total other financing sources 109,080 51,465 51,514 49 Net change in fund balances -$ (130,865)$ (129,351) 1,514$ Fund Balance (Deficit), Beginning (149,775) Fund Balance (Deficit), Ending (279,126)$ City of Galesburg, Illinois 2013A GO Bonds Business District Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 125 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property -$ -$ 57$ 57$ Total revenues - - 57 57 Expenditures Debt Service: Principal 385,000 385,000 385,000 - Interest and fiscal charges 253,665 253,665 253,657 8 Total expenditures 638,665 638,665 638,657 8 Excess (deficiency) of revenues over expenditures (638,665) (638,665) (638,600) 65 Other Financing Sources Transfers in 638,665 638,665 638,600 (65) Total other financing sources 638,665 638,665 638,600 (65) Net change in fund balances -$ -$ - -$ Fund Balance, Beginning - Fund Balance, Ending -$ City of Galesburg, Illinois 2016 GO Bond Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 126 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Total revenues -$ -$ -$ -$ Expenditures Current: Public works - 21,750 21,750 - Capital outlay - 55,815 - 55,815 Total expenditures - 77,565 21,750 55,815 Net change in fund balances -$ (77,565)$ (21,750) 55,815$ Fund Balance, Beginning 21,750 Fund Balance, Ending -$ City of Galesburg, Illinois Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 2016 GO Capital Improvement Fund Year Ended December 31, 2020 127 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 25,000$ 25,000$ 29,153$ 4,153$ Use of money and property 75 75 48 (27) Total revenues 25,075 25,075 29,201 4,126 Other Financing Uses Transfers out (25,075) (28,460) (28,456) 4 Total other financing uses (25,075) (28,460) (28,456) 4 Net change in fund balances -$ (3,385)$ 745 4,130$ Fund Balance, Beginning 5,142 Fund Balance, Ending 5,887$ City of Galesburg, Illinois 2013A Business District Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 128 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 1,565,120$ 1,433,120$ 1,433,265$ 145$ Use of money and property 30,000 13,000 13,011 11 Contributions - 10,000 10,000 - Total revenues 1,595,120 1,456,120 1,456,276 156 Expenditures Current: General government 787,200 880,105 613,885 266,220 Capital outlay 150,900 596,970 284,712 312,258 Debt service: Interest and fiscal charges - 9,605 9,603 2 Total expenditures 938,100 1,486,680 908,200 578,480 Excess (deficiency) of revenues over expenditures 657,020 (30,560) 548,076 578,636 Other Financing Uses Transfers out (1,204,285) (2,070,865) (2,070,800) 65 Total other financing uses (1,204,285) (2,070,865) (2,070,800) 65 Net change in fund balances (547,265)$ (2,101,425)$ (1,522,724) 578,701$ Fund Balance, Beginning 1,385,578 Fund Balance (Deficit), Ending (137,146)$ City of Galesburg, Illinois Utility Tax Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 129 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 212,210$ 75,210$ 75,597$ 387$ Use of money and property 1,435 35 72 37 Total revenues 213,645 75,245 75,669 424 Expenditures Current: Miscellaneous 226,100 226,100 13,153 212,947 Total expenditures 226,100 226,100 13,153 212,947 Excess (deficiency) of revenues over expenditures (12,455) (150,855) 62,516 213,371 Other Financing Uses Transfers out (200,000) (200,000) - (200,000) Total other financing uses (200,000) (200,000) - (200,000) Net change in fund balances (212,455)$ (350,855)$ 62,516 413,371$ Fund Balance (Deficit), Beginning (503,098) Fund Balance (Deficit), Ending (440,582)$ City of Galesburg, Illinois TIF 3 Regency Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 130 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 59,110$ 31,700$ 31,711$ 11$ Miscellaneous - 91,825 93,025 1,200 Total revenues 59,110 123,525 124,736 1,211 Expenditures Current: Public works 308,600 477,590 229,535 248,055 Capital outlay 308,120 1,790,570 1,270,016 520,554 Total expenditures 616,720 2,268,160 1,499,551 768,609 Excess (deficiency) of revenues over expenditures (557,610) (2,144,635) (1,374,815) 769,820 Other Financing Sources Transfers in 659,560 1,655,160 1,655,160 - Total other financing sources 659,560 1,655,160 1,655,160 - Net change in fund balances 101,950$ (489,475)$ 280,345 769,820$ Fund Balance, Beginning 3,141,053 Fund Balance, Ending 3,421,398$ City of Galesburg, Illinois Building Repair and Maintenance Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 131 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 220,675$ 220,675$ 218,365$ (2,310)$ Use of money and property 170 170 442 272 Total revenues 220,845 220,845 218,807 (2,038) Expenditures Current: General government 234,865 234,865 155,605 79,260 Total expenditures 234,865 234,865 155,605 79,260 Net change in fund balances (14,020)$ (14,020)$ 63,202 77,222$ Fund Balance, Beginning 267,518 Fund Balance, Ending 330,720$ City of Galesburg, Illinois TIF Downtown Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 132 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 463,500$ 495,500$ 495,880$ 380$ Use of money and property 4,195 1,585 1,590 5 Total revenues 467,695 497,085 497,470 385 Expenditures Current: General government 3,875 3,875 345 3,530 Miscellaneous 990,540 898,690 168,830 729,860 Total expenditures 994,415 902,565 169,175 733,390 Excess (deficiency) of revenues over expenditures (526,720) (405,480) 328,295 733,775 Other Financing Uses Transfers out (100,000) (191,850) (191,847) 3 Total other financing uses (100,000) (191,850) (191,847) 3 Net change in fund balances (626,720)$ (597,330)$ 136,448 733,778$ Fund Balance, Beginning 427,866 Fund Balance, Ending 564,314$ City of Galesburg, Illinois TIF East Main Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 133 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 25,000$ 10,000$ 11,577$ 1,577$ Total revenues 25,000 10,000 11,577 1,577 Expenditures Current: General government 297,100 362,310 348,981 13,329 Capital outlay 429,500 429,500 - 429,500 Total expenditures 726,600 791,810 348,981 442,829 Excess (deficiency) of revenues over expenditures (701,600) (781,810) (337,404) 444,406 Other Financing Sources Transfers in 287,520 287,520 287,520 - Total other financing sources 287,520 287,520 287,520 - Net change in fund balances (414,080)$ (494,290)$ (49,884) 444,406$ Fund Balance, Beginning 1,472,414 Fund Balance, Ending 1,422,530$ City of Galesburg, Illinois Computer Replacement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 134 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 46,110$ 34,210$ 34,280$ 70$ Miscellaneous - 12,000 12,000 - Total revenues 46,110 46,210 46,280 70 Expenditures Current: General government 202,500 202,500 58,039 144,461 Capital outlay 674,000 674,000 636,148 37,852 Total expenditures 876,500 876,500 694,187 182,313 Excess (deficiency) of revenues over expenditures (830,390) (830,290) (647,907) 182,383 Other Financing Sources Transfers in 1,073,780 1,032,180 1,032,180 - Total other financing sources 1,073,780 1,032,180 1,032,180 - Net change in fund balances 243,390$ 201,890$ 384,273 182,383$ Fund Balance, Beginning 3,388,991 Fund Balance, Ending 3,773,264$ City of Galesburg, Illinois Vehicle Replacement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 135 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 6,000$ 4,360$ 4,434$ 74$ Total revenues 6,000 4,360 4,434 74 Expenditures Current: Culture and recreation 2,000 2,000 - 2,000 Total expenditures 2,000 2,000 - 2,000 Net change in fund balances 4,000$ 2,360$ 4,434 2,074$ Fund Balance, Beginning 14,762 Fund Balance, Ending 19,196$ City of Galesburg, Illinois Players Fields Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 136 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Other Financing Sources (Uses) Transfers in -$ 250,000$ 250,000$ -$ Transfers out - (65) (62) 3 Total other financing sources (uses)- 249,935 249,938 3 Net change in fund balances -$ 249,935$ 249,938 3$ Fund Balance, Beginning 9 Fund Balance, Ending 249,947$ City of Galesburg, Illinois Capital Planning Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 137 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 254,740$ 337,740$ 338,167$ 427$ Use of money and property 635 635 3,668 3,033 Miscellaneous - (153,495) 690 154,185 Total revenues 255,375 184,880 342,525 157,645 Expenditures Current: General government 2,645 446,590 447,866 (1,276) Miscellaneous 230,040 187,415 165,937 21,478 Capital outlay 187,500 265,430 264,748 682 Total expenditures 420,185 899,435 878,551 20,884 Excess (deficiency) of revenues over expenditures (164,810) (714,555) (536,026) 178,529 Other Financing Sources Transfers in 100,000 191,850 191,847 (3) Total other financing sources 100,000 191,850 191,847 (3) Net change in fund balances (64,810)$ (522,705)$ (344,179) 178,526$ Fund Balance, Beginning 859,937 Fund Balance, Ending 515,758$ City of Galesburg, Illinois TIF IV Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 138 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 5,725$ 6,925$ 6,979$ 54$ Use of money and property 65 65 63 (2) Total revenues 5,790 6,990 7,042 52 Expenditures Current: Miscellaneous 18,540 18,540 1,000 17,540 Total expenditures 18,540 18,540 1,000 17,540 Net change in fund balances (12,750)$ (11,550)$ 6,042 17,592$ Fund Balance, Beginning 13,116 Fund Balance, Ending 19,158$ City of Galesburg, Illinois TIF V Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 139 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 3,000$ 8,000$ 8,906$ 906$ Total revenues 3,000 8,000 8,906 906 Expenditures Current: General government 1,000 1,000 895 105 Total expenditures 1,000 1,000 895 105 Excess (deficiency) of revenues over expenditures 2,000 7,000 8,011 1,011 Other Financing Uses Transfers out (2,000) (2,000) (1,484) 516 Total other financing uses (2,000) (2,000) (1,484) 516 Net change in fund balances -$ 5,000$ 6,527 1,527$ Fund Balance, Beginning 79,546 Fund Balance, Ending 86,073$ City of Galesburg, Illinois Linwood Cemetery Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 140 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 30,000$ 51,000$ 51,689$ 689$ Miscellaneous 9,500 19,500 21,100 1,600 Total revenues 39,500 70,500 72,789 2,289 Expenditures Current: General government 5,000 5,210 5,208 2 Total expenditures 5,000 5,210 5,208 2 Excess (deficiency) of revenues over expenditures 34,500 65,290 67,581 2,291 Other Financing Uses Transfers out (15,000) (14,790) (8,608) 6,182 Total other financing uses (15,000) (14,790) (8,608) 6,182 Net change in fund balances 19,500$ 50,500$ 58,973 8,473$ Fund Balance, Beginning 463,875 Fund Balance, Ending 522,848$ City of Galesburg, Illinois East Linwood Cemetery Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2020 141 Galesburg Galesburg Public Public Library Statement of Library Foundation Total Adjustments Net Position Assets Cash and cash equivalents 5,908,360$ 290,900$ 6,199,260$ -$ 6,199,260$ Investments - 4,323,855 4,323,855 - 4,323,855 Receivables (net) Property tax receivable 1,576,150 - 1,576,150 - 1,576,150 Accounts (92) - (92) - (92) Loans - 3,000,000 3,000,000 (3,000,000) - Due from other governments 1,717 - 1,717 - 1,717 Prepaid items 41,872 - 41,872 - 41,872 Capital assets not being depreciated - - - 658,423 658,423 Capital assets being depreciated, net of accumulated depreciation - - - 872,870 872,870 Total assets 7,528,007 7,614,755 15,142,762 (1,468,707) 13,674,055 Deferred Outflows of Resources Deferred outflows related to pensions - - - 329,005 329,005 Deferred outflows related to OPEB - - - 3,636 3,636 Total deferred outflows of resources - - - 332,641 332,641 Liabilities Current liabilities: Accounts payable 157,863 - 157,863 - 157,863 Accrued liabilities 26,798 - 26,798 - 26,798 Payroll taxes payable 654 654 - 654 Due to other governments 3,000,028 - 3,000,028 (3,000,000) 28 Unearned revenues 8,390 - 8,390 - 8,390 Noncurrent liabilities: Due within one year - 3,000,000 3,000,000 41,337 3,041,337 Due in more than one year - - - 2,590,407 2,590,407 Total liabilities 3,193,079 3,000,654 6,193,733 (368,256) 5,825,477 Deferred Inflows of Resources Property taxes levied for future periods 1,576,150 - 1,576,150 - 1,576,150 Deferred inflows related to pensions - - - 326,070 326,070 Deferred inflows related to OPEB - - - 2,309 2,309 Total deferred inflows of resources 1,576,150 - 1,576,150 328,379 1,904,529 Fund Balance / Net Position Net investment in capital assets - - - 1,531,293 1,531,293 Nonspendable 41,872 - 41,872 (41,872) - Temporary restricted, Foundation - 1,577,710 1,577,710 - 1,577,710 Unassigned/Unrestricted 2,716,906 3,036,391 5,753,297 (2,585,610) 3,167,687 Total fund balance/net position 2,758,778$ 4,614,101$ 7,372,879$ (1,096,189)$ 6,276,690$ City of Galesburg, Illinois Component Unit Statement of Net Position and Governmental Funds Combining Balance Sheet December 31, 2020 142 Galesburg Galesburg Public Public Library Statement Library Foundation Total Adjustments of Activities Revenues Property taxes 1,554,571$ -$ 1,554,571$ -$ 1,554,571$ Intergovernmental 89,344 - 89,344 - 89,344 Licenses and permits 1,106 - 1,106 - 1,106 Charges for services 1,526 - 1,526 - 1,526 Fines and fees 871 - 871 - 871 Use of money and property 37,567 313,982 351,549 - 351,549 Miscellaneous 109,854 18,544 128,398 - 128,398 Total revenues 1,794,839 332,526 2,127,365 - 2,127,365 Expenditures Current: Culture and recreation 1,669,390 199,899 1,869,289 47,817 1,917,106 Debt service: Interest and fiscal charges 152,332 - 152,332 - 152,332 Capital outlay 884,688 - 884,688 (884,688) - Total expenditures 2,706,410 199,899 2,906,309 (836,871) 2,069,438 Excess (deficiency) of revenues over e (911,571) 132,627 (778,944) 836,871 57,927 Other Financing Sources (Uses) Debt certificates issued 2,000,500 - 2,000,500 (2,000,500) - Total other financing sources (uses)2,000,500 - 2,000,500 (2,000,500) - Net change in fund balance/net positio 1,088,929 132,627 1,221,556 (1,163,629) 57,927 Fund Balance/Net Position, Beginning 1,669,849 4,481,474 6,151,323 67,440 6,218,763 Fund Balance/Net Position, Ending 2,758,778$ 4,614,101$ 7,372,879$ (1,096,189)$ 6,276,690$ City of Galesburg, Illinois Component Unit Statement of Activities and Governmental Fund Combining Statement of Revenues, Expenditures & Changes in Fund Balances/Net Position Year Ended December 31, 2020 143 The statistical section of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information presented in the financial statements, note disclosures and required supplementary information say about the City's overall financial health. Contents Page(s) Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well being have changed over time.145 - 149 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue sources, the property tax (or sales tax).150 - 155 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.156 - 157 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.128 - 160 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.161 - 162 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual report for the relevant year. City of Galesburg, Illinois Statistical Section Contents 144 City of Galesburg, Illinois Statistical Section Comments Relative to Statistical Section The following statistical table recommended by the National Council on Governmental Accounting is not included for the reason stated below. The table showing legal debt margin is omitted because as a "Home Rule" unit established by the 1970 Illinois Constitution, the Sample City has no statutory debt limit. Nonhome Rule units in Illinois may issued bonds up to 8.625 percent of Assessed Valuation. Some Types of General Obligation Bonds may be issued up to 5 percent of Assessed Valuation. 145 2011 2012 2013 2014 2015*2016 2017 2018**2019 2020 Governmental activities: Net investment in capital assets 44,785,925$ 47,712,283$ 47,828,315$ 51,452,927$ 63,739,737$ 63,792,831$ 65,500,187$ 66,126,310$ 70,078,243$ 70,812,000$ Restricted 5,743,247 6,283,305 7,195,648 10,923,284 9,079,864 10,624,226 11,440,849 9,382,619 8,796,867 8,464,898 Unrestricted 33,387,387 32,842,341 32,082,018 27,953,253 (19,157,970) (21,878,584) (26,361,249) (44,150,644) (50,444,236) (56,479,267) Total governmental activities net position 83,916,559$ 86,837,929$ 87,105,981$ 90,329,464$ 53,661,631$ 52,538,473$ 50,579,787$ 31,358,285$ 28,430,874$ 22,797,631$ Business-type activities: Net investment in capital assets 16,333,705$ 16,787,584$ 17,316,934$ 16,374,116$ 17,144,205$ 17,947,204$ 18,662,529$ 18,786,318$ 19,486,089$ 21,470,231$ Restricted 1,603,737 1,623,369 1,748,298 1,841,849 1,882,380 1,931,899 115,195 - - - Unrestricted 6,919,758 7,246,666 7,254,377 8,007,034 8,627,065 8,585,924 10,233,257 9,563,406 9,478,377 8,400,225 Total business-type activities net position 24,857,200$ 25,657,619$ 26,319,609$ 26,222,999$ 27,653,650$ 28,465,027$ 29,010,981$ 28,349,724$ 28,964,466$ 29,870,456$ Primary government: Net investment in capital assets 61,119,630$ 64,499,867$ 65,145,249$ 67,827,043$ 80,883,942$ 81,740,035$ 84,162,716$ 84,912,628$ 89,564,332$ 92,282,231$ Restricted 7,346,984 7,906,674 8,943,946 12,765,133 10,962,244 12,556,125 11,556,044 9,382,619 8,796,867 8,464,898 Unrestricted 40,307,145 40,089,007 39,336,395 35,960,287 (10,530,905) (13,292,660) (16,127,992) (34,587,238) (40,965,859) (48,079,042) Total primary government net position 108,773,759$ 112,495,548$ 113,425,590$ 116,552,463$ 81,315,281$ 81,003,500$ 79,590,768$ 59,708,009$ 57,395,340$ 52,668,087$ *The City implemented GASB Statement No. 68 in 2015. Prior years have not been restated. **The City implemented GASB Statement No. 75 in 2018. Prior years have not been restated. (Unaudited) City of Galesburg, Illinois Net Position By Component Last Ten Fiscal Years (Accrual Basis of Accounting) 146 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Expenses Governmental activities: General government 7,902,033$ 8,794,360$ 9,109,242$ 10,426,751$ 9,380,664$ 8,248,902$ 9,306,471$ 10,992,849$ 10,651,157$ 11,550,509$ Economic development 571,056 638,641 925,144 1,486,124 1,905,456 2,268,500 2,008,950 3,389,260 1,967,235 2,089,501 Public safety 10,598,447 11,650,954 11,290,119 14,021,956 16,456,993 18,224,515 22,072,437 21,413,721 24,782,293 26,287,931 Public works 12,220,085 13,080,515 8,171,519 7,386,062 5,811,833 6,973,467 6,710,310 6,658,379 6,272,794 6,348,081 Culture and recreation 2,974,653 2,986,267 2,773,924 3,461,428 3,801,421 3,641,663 4,224,280 4,566,350 3,970,192 4,596,048 Interest on long-term debt 383,162 381,390 375,589 217,311 199,491 430,255 425,771 395,346 362,007 337,940 Total governmental activities expenses 34,649,436 37,532,127 32,645,537 36,999,632 37,555,858 39,787,302 44,748,219 47,415,905 48,005,678 51,210,010 Business-Type Activities Water 4,428,103 5,045,330 5,264,996 6,011,693 5,067,996 5,419,955 5,920,927 6,076,418 6,381,984 6,431,060 Refuse 1,926,676 1,980,440 2,120,941 2,180,298 2,244,566 2,305,095 2,391,562 2,530,820 2,579,990 2,688,662 Total business-type activities expenses 6,354,779 7,025,770 7,385,937 8,191,991 7,312,562 7,725,050 8,312,489 8,607,238 8,961,974 9,119,722 Total primary government expenses 41,004,215 44,557,897 40,031,474 45,191,623 44,868,420 47,512,352 53,060,708 56,023,143 56,967,652 60,329,732 Program Revenue Governmental activities: Charges for services: General government 2,191,225 2,104,879 2,596,649 3,397,076 2,700,392 2,398,183 2,575,497 2,801,320 2,935,246 2,906,591 Economic development 335,938 351,134 252,539 6,157 6,525 5,990 5,310 3,798 39,030 287,559 Public safety 1,641,134 1,387,175 1,217,057 1,149,013 1,114,419 1,189,755 1,246,902 1,193,653 1,204,958 1,132,756 Public works 376,089 542,092 446,805 11,347 60,114 43,562 75,899 66,469 84,673 73,722 Culture and recreation 700,924 689,518 670,181 657,088 895,304 909,345 879,680 887,535 865,211 642,741 Operating grants and contributions: General government 1,078,378 1,303,348 1,445,622 1,578,654 1,134,256 1,362,415 2,982,046 3,647,909 4,851,809 6,468,193 Economic development - - 1,947 - - - - - - - Public safety 118,785 69,812 129,022 35,250 353,202 62,545 504,469 138,824 67,221 82,279 Public works 1,373,691 1,782,992 1,371,373 - - - - - - 19,507 Culture and recreation 20,510 - - - - - - - - - Capital grants and contributions: General government 109,906 - - 6,398,917 6,209,660 380,165 1,757,054 849,360 58,973 289,396 Economic development - 363,085 - - - - - - - - Public works 7,860,173 9,413,653 1,877,191 1,100,260 8,185,232 1,903,931 420,860 108,545 2,058,593 1,202,371 Total governmental activities program revenue 15,806,753 18,007,688 10,008,386 14,333,762 20,659,104 8,255,891 10,447,717 9,697,413 12,165,714 13,105,115 Business-Type Activities Charges for services: Water 5,322,633 5,689,808 5,817,291 5,787,338 5,830,076 6,042,198 6,154,575 6,599,837 6,678,978 7,203,364 Refuse 2,005,133 2,081,239 2,194,321 2,260,260 2,312,419 2,358,692 2,468,372 2,528,662 2,599,519 2,686,297 Operating grants and contributions: Water - - - 5,930 - - - - 30,599 776 Refuse - - 10,412 - - - - - - - Capital grants and contributions: Water 85,249 28,222 10,971 - 596,610 - - - - - Total business-type activities program revenues 7,413,015 7,799,269 8,032,995 8,053,528 8,739,105 8,400,890 8,622,947 9,128,499 9,309,096 9,890,437 Total primary government program revenues 23,219,768 25,806,957 18,041,381 22,387,290 29,398,209 16,656,781 19,070,664 18,825,912 21,474,810 22,995,552 Net (Expense) Revenue Governmental activities (18,842,683) (19,524,439) (22,637,151) (22,665,870) (16,896,754) (31,531,411) (34,300,502) (37,718,492) (35,839,964) (38,104,895) Business-type activities 1,058,236 773,499 647,058 (138,463) 1,426,543 675,840 310,458 521,261 347,122 770,715 Total primary government net expense (17,784,447) (18,750,940) (21,990,093) (22,804,333) (15,470,211) (30,855,571) (33,990,044) (37,197,231) (35,492,842) (37,334,180) (Unaudited) City of Galesburg, Illinois Changes In Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) 147 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes 5,627,227$ 5,361,430$ 4,813,998$ 8,025,087$ 8,458,821$ 9,033,770$ 9,541,732$ 9,419,335$ 9,665,453$ 9,654,393$ State income tax 3,122,763 3,761,120 3,659,227 3,677,911 4,197,294 3,874,965 3,757,675 4,051,395 4,540,628 4,982,939 Sales taxes 8,716,971 8,912,100 8,916,296 8,941,898 9,008,695 9,138,074 9,138,895 9,446,869 9,476,544 10,024,794 Local utility taxes - - - - - 2,218,708 2,228,891 2,431,396 2,332,084 2,155,282 Other taxes 3,253,858 3,251,678 3,577,028 4,513,348 4,830,219 4,817,168 4,995,660 4,885,938 5,199,506 4,381,227 Franchise fees 382,542 378,686 395,864 405,815 406,266 418,674 422,760 403,957 393,739 379,892 Investment earnings 210,529 188,908 115,785 152,056 168,384 299,277 446,537 714,247 923,548 437,168 Miscellaneous 362,273 591,887 1,598,354 173,238 705,344 607,617 1,809,666 887,002 381,051 455,957 Gain on disposal of capital assets - - (171,349) - - - - - - - Total governmental activities 21,676,163 22,445,809 22,905,203 25,889,353 27,775,023 30,408,253 32,341,816 32,240,139 32,912,553 32,471,652 Business-type activities: Investment earnings 23,306 19,947 14,832 26,963 50,280 67,068 99,641 202,127 267,620 128,670 Miscellaneous 24,240 6,973 100 14,890 15,757 68,469 135,855 77,729 - 6,605 Total business-type activities 47,546 26,920 14,932 41,853 66,037 135,537 235,496 279,856 267,620 135,275 Total primary government 21,723,709 22,472,729 22,920,135 25,931,206 27,841,060 30,543,790 32,577,312 32,519,995 33,180,173 32,606,927 Changes in net position: Governmental activities 2,833,480 2,921,370 268,052 3,223,483 10,878,269 (1,123,158) (1,958,686) (5,478,353) (2,927,411) (5,633,243) Business-type activities 1,105,782 800,419 661,990 (96,610) 1,492,580 811,377 545,954 801,117 614,742 905,990 Total primary government 3,939,262$ 3,721,789$ 930,042$ 3,126,873$ 12,370,849$ (311,781)$ (1,412,732)$ (4,677,236)$ (2,312,669)$ (4,727,253)$ (Unaudited) City of Galesburg, Illinois Changes In Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 148 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Fund Nonspendable 297,365$ 325,607$ 357,233$ 387,939$ 352,361$ 314,201$ 363,528$ 293,356$ 266,254$ 380,886$ Restricted 360,966 363,099 359,419 355,923 29,823 29,889 12,795 12,795 12,795 12,792 Committed 202,820 238,198 221,917 370,899 192,766 232,553 209,009 199,801 199,650 222,856 Assigned 293,606 293,974 - - - - - - - - Unassigned 6,478,161 6,828,509 7,287,240 6,566,847 6,587,692 6,573,454 6,991,851 8,272,593 9,626,180 11,312,598 Total general fund 7,632,918 8,049,387 8,225,809 7,681,608 7,162,642 7,150,097 7,577,183 8,778,545 10,104,879 11,929,132 All Other Governmental Funds Nonspendable 6,870,659 5,991,265 439,367 563,864 540,602 495,305 506,234 539,799 547,179 644,250 Restricted 5,382,281 6,416,851 5,997,683 8,114,466 7,645,407 17,784,956 14,294,156 9,638,418 8,026,131 7,423,477 Committed 2,099,236 6,366,129 9,546,003 7,716,130 7,970,913 8,789,239 9,737,039 10,350,686 10,190,597 9,914,430 Assigned 12,789,454 10,025,588 12,894,349 12,926,080 12,582,445 12,105,602 12,397,721 12,931,691 13,530,588 14,127,134 Unassigned 734,553 (470,842) (360,557) (1,463,464) (1,254,144) (1,199,351) (1,229,928) (1,598,320) (1,297,267) (2,079,200) Total all other government funds 27,876,183$ 28,328,991$ 28,516,845$ 27,857,076$ 27,485,223$ 37,975,751$ 35,705,222$ 31,862,274$ 30,997,228$ 30,030,091$ (Modified Accrual Basis of Accounting) (Unaudited) City of Galesburg, Illinois Fund Balances, Governmental Funds Last Ten Fiscal Years 149 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenues Property taxes 5,627,227$ 5,361,430$ 4,813,998$ 8,025,087$ 8,458,821$ 9,033,770$ 9,541,732$ 9,419,335$ 9,665,453$ 9,654,393$ Other taxes 14,796,757 15,757,226 16,309,783 7,055,982 7,459,717 9,955,260 10,235,859 10,566,961 10,660,820 10,351,443 Intergovernmental 11,214,930 13,852,865 5,763,615 19,255,996 20,150,887 14,044,207 17,247,795 16,044,387 18,493,997 20,080,853 Licenses and permits 290,044 290,169 288,337 303,442 313,835 311,327 329,799 338,115 363,599 299,889 Charges for services 991,027 1,069,977 984,473 960,001 1,254,793 966,862 1,057,294 1,220,539 1,108,239 1,341,266 Fines and fees 540,826 484,350 415,470 392,776 334,872 344,590 419,615 447,782 407,934 329,410 Use of money and property 2,005,717 2,209,361 2,241,573 1,657,831 1,905,241 2,005,080 2,133,287 2,422,328 2,598,159 1,801,196 Other, primarily contributions 385,787 669,544 1,352,792 178,270 699,301 440,584 723,846 266,926 268,736 422,934 Total revenues 35,852,315 39,694,922 32,170,041 37,829,385 40,577,467 37,101,680 41,689,227 40,726,373 43,566,937 44,281,384 Expenditures General government 6,746,819 7,857,333 8,196,399 8,086,615 7,345,258 6,945,661 6,714,688 7,329,243 7,779,109 8,612,597 Economic development 457,026 391,323 706,217 856,177 1,102,282 794,240 717,245 2,391,827 1,029,517 1,577,452 Public safety 11,061,203 10,836,408 10,833,609 13,721,786 15,473,856 15,118,405 16,384,103 16,407,314 17,150,554 17,887,688 Public works 4,594,288 4,370,306 4,724,879 4,960,632 4,465,772 5,416,330 4,738,099 4,749,904 4,235,111 4,480,544 Culture and recreation 2,582,993 2,570,892 2,397,168 2,606,710 3,688,566 3,342,100 3,625,399 3,751,977 3,419,021 2,992,771 Other 6,487,700 7,572,492 2,273,115 2,173,970 2,835,652 1,427,368 2,567,311 3,177,276 3,104,994 2,983,306 Debt service: Principal 660,000 725,000 805,450 792,725 837,725 1,210,000 1,225,000 1,275,000 1,280,000 710,000 Interest and fiscal agent fees 406,903 276,936 209,318 259,171 227,930 477,632 470,249 433,749 393,092 361,859 Bond issuance costs 78,695 - 62,096 - - - - - - - Capital outlay 2,757,259 4,224,955 3,172,096 5,616,081 5,522,623 1,801,654 7,098,520 4,518,683 4,725,897 3,832,577 Total expenditures 35,832,886 38,825,645 33,380,347 39,073,867 41,499,664 36,533,390 43,540,614 44,034,973 43,117,295 43,438,794 Excess of revenues (under) expenditures 19,429 869,277 (1,210,306) (1,244,482) (922,197) 568,290 (1,851,387) (3,308,600) 449,642 842,590 Other Financing Sources (Uses) Issuance of long-term debt 7,580,000 - 1,420,900 - - 9,600,000 - - - - Proceeds from sale of capital assets - - 123,629 24,268 31,378 2,243 7,944 43,239 11,646 14,526 Payment to refund bonds (7,740,000) - - - - - - - - - Bond premium 215,610 - 30,053 - - 307,450 - - - - Transfers in 10,882,148 3,020,830 3,569,484 3,362,576 2,172,027 2,209,391 2,638,340 3,710,458 4,931,368 4,935,333 Transfers out (10,882,148) (3,020,830) (3,569,484) (3,346,332) (2,172,027) (2,209,391) (2,638,340) (3,086,683) (4,931,368) (4,935,333) Total other financing sources (uses)55,610 - 1,574,582 40,512 31,378 9,909,693 7,944 667,014 11,646 14,526 Net changes in fund balance 75,039$ 869,277$ 364,276$ (1,203,970)$ (890,819)$ 10,477,983$ (1,843,443)$ (2,641,586)$ 461,288$ 857,116$ Debt service as a percentage of noncapital expenditures 3.46%2.90%3.36%3.14%2.96%4.71%4.65%4.32%4.36%2.71% (Unaudited) City of Galesburg, Illinois Changes In Fund Balances, Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 150 Illinois Municipal Galesburg Galesburg Galesburg Carl Sandburg Fiscal General Retirement Public Total School Knox Sanitary College Year Fund Fire Fund Library Township Direct District #205 County District District #518 2011 0.82760 1.00630 0.19870 0.41570 0.17570 2.624 4.19940 1.14720 0.28730 0.61870 2012 0.76530 1.04980 0.22095 0.42940 0.16240 2.628 4.20480 1.16250 0.30050 0.61750 2013 0.90160 0.89130 0.22020 0.43420 0.16120 2.609 4.22000 1.16150 0.30640 0.62280 2014 0.91076 0.94253 0.20067 0.43578 0.16144 2.651 4.46713 1.31632 0.31251 0.62516 2015 0.97015 0.96471 0.19869 0.44462 0.15985 2.738 4.59146 1.31914 0.31426 0.61915 2016 1.14933 0.95001 0.19566 0.43784 0.15741 2.890 4.70178 1.32510 0.31862 0.60345 2017 1.13822 1.04243 0.11957 0.44612 0.15277 2.899 4.95759 1.33005 0.31028 0.66725 2018 1.04070 1.11756 0.11835 0.44154 0.15121 2.869 4.83436 1.36373 0.29861 0.65244 2019 1.05148 1.12237 0.08200 0.42971 0.14715 2.833 4.83436 1.31864 0.30602 0.64308 2020 0.98996 1.14671 0.08010 0.43792 0.14375 2.798 4.88974 1.31560 0.30571 0.65943 Source: City records and Knox County Circuit Clerk Notes: Overlapping rates are those of local and county governments that apply to property owners within the City. City of Galesburg, Illinois Direct and Overlapping Property Tax Rates Last Ten Fiscal Years City Direct Rates Overlapping Rates 151 Total Total Total Taxable Gross Estimated Fiscal Residential Commercial Industrial Farm Railway Assessed Assessed Total Direct Actual Year Property Property Property Property Property Value Value Tax Rate Value 2011 178,762,119$ 111,019,031$ 9,286,400$ 696,250$ 17,777,172$ 317,540,972$ 393,090,382$ 2.624 1,179,271,146$ 33.33 % 2012 175,992,076 109,296,161 8,489,270 741,400 20,838,542 315,357,449 387,172,472 2.628 1,161,517,416 33.33 2013 177,153,716 109,463,231 8,895,550 790,310 21,422,461 317,725,268 387,542,001 2.609 1,162,626,003 33.33 2014 172,972,143 111,399,641 9,191,100 877,630 21,367,871 316,577,637 389,890,971 2.651 1,169,672,913 33.33 2015 173,299,061 114,388,506 8,644,310 951,950 22,412,587 319,741,004 392,841,567 2.738 1,178,524,701 33.33 2016 175,275,760 116,346,621 8,612,190 852,010 23,605,742 324,692,323 397,944,942 2.890 1,193,834,826 33.33 2017 178,282,965 121,543,671 8,666,130 866,090 25,180,759 334,539,615 409,290,589 2.899 1,227,871,767 33.33 2018 178,538,545 123,177,891 8,668,670 884,350 26,744,789 338,014,245 412,320,399 2.869 1,236,961,197 33.33 2019 184,772,310 124,243,111 8,744,150 934,940 28,629,168 347,323,679 423,201,708 2.833 1,269,605,124 33.33 2020 186,888,191 127,571,276 8,846,430 987,470 31,257,896 355,551,263 430,529,946 2.798 1,291,589,838 33.33 Source: City Assessor's Office Actual Value City of Galesburg, Illinois Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) Value as a Percentage 152 Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Burlington Northern/Santa Fe 28,574,578$ 1 8.23%17,777,170$ 1 5.52% Galesburg Hospital Corp 7,435,740 2 2.14%7,035,580 2 2.19% Seminary Manor, Seminary Estates & Hawthorne Inn & Achievement Unlimited 5,473,940 3 1.58%4,215,080 3 1.31% Wal-Mart 4,181,340 4 1.20%4,062,020 4 1.26% Menard Inc 3,516,510 5 1.01%3,083,060 5 0.96% Hy-Vee Food Stores, Inc 2,831,030 6 0.82%2,518,960 6 0.78% OSF St Francis Inc 2,594,250 7 0.75%0.00% Lowes Home Centers 2,352,330 8 0.68%2,285,120 7 0.71% Rural Rentals LLC 2,063,850 9 0.59%0.00% United Facilites 2,015,250 10 0.58%0.00% Galesburg Real Estate Inc 2,138,640 8 0.66% IRG Galesburg LLC Et AL 1,955,800 9 0.61% Douglas & Associates LLC % Home Development LP 1,937,170 10 0.60% Total 61,038,818$ 17.57%47,008,600$ 14.60% Source: City Assessor's Office City of Galesburg, Illinois Principal Property Taxpayers Current Year and Ten Years Ago (Unaudited) 2020 2010 153 Taxes Levied Collections in for the Subsequent Fiscal Year Tax Year Tax Year Amount Years Amount 2011 2010 7,774,356$ 7,729,193$ 99.42 %(27,362)$ 7,756,555$ 99.77 % 2012 2011 7,775,138 7,702,781 99.07 (52,517) 7,755,298 99.74 2013 2012 7,775,690 7,764,530 99.86 8,949 7,755,581 99.74 2014 2013 7,881,960 7,847,373 99.56 (5,198) 7,852,571 99.63 2015 2014 8,243,467 8,269,247 100.31 26,107 8,243,140 100.00 2016 2015 8,873,322 8,870,039 99.96 511 8,869,528 99.96 2017 2016 9,187,595 9,188,337 100.01 4,910 9,183,427 99.95 2018 2017 9,187,734 9,136,055 99.44 (3,035) 9,139,090 99.47 2019 2018 9,327,586 9,321,849 99.94 20,592 9,301,257 99.72 2020 2019 9,438,819 9,424,130 99.84 3,305 9,420,825 99.81 Source: Knox County Circuit Clerk Note: Collections in Subsequent years include taxes received as well as abatements deducted for prior years Total Fiscal Year Collection Percentage of Levy Percentage of Levy City of Galesburg, Illinois Property Tax Levies And Collections Last Ten Fiscal Years (Unaudited) Total Current Year Levy Collection 154 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General merchandise 1,203,911$ 1,005,239$ 1,191,398$ 1,156,517$ 1,134,271$ 1,180,549$ 1,143,338$ 1,119,726$ 1,155,822$ 1,176,875$ 1,136,015$ Food 756,658 783,213 798,494 819,644 845,967 852,400 839,231 844,909 887,874 922,281 1,225,462 Drinking and eating places 513,660 510,048 529,513 541,269 561,082 587,733 584,949 588,154 601,763 623,848 557,267 Apparel 39,367 214,223 36,156 40,522 51,465 52,410 48,951 41,999 41,051 41,812 29,809 Furniture, H.H. and radio 142,488 133,286 123,396 117,355 110,590 107,874 118,568 106,393 95,384 91,477 89,894 Lumber, bldg, hardware 469,769 477,816 501,165 524,624 529,917 564,372 561,379 551,685 553,147 588,515 689,217 Automotive and filling stations 991,189 1,021,062 1,099,880 1,080,285 1,123,279 1,117,935 1,141,555 1,244,062 1,274,273 1,239,553 1,106,763 Drugs and misc retail 622,541 631,688 648,106 660,278 656,535 652,330 700,735 695,764 725,894 780,583 880,485 Agriculture and all others 338,558 352,995 361,911 331,553 311,713 274,843 291,533 365,289 368,029 296,518 340,245 Manufacturers 21,583 28,769 20,422 39,813 28,263 20,238 55,836 (4,388) 28,236 28,407 57,732 Total 5,099,722$ 5,158,339$ 5,310,441$ 5,311,861$ 5,353,083$ 5,410,685$ 5,486,074$ 5,553,593$ 5,731,473$ 5,789,868$ 6,112,887$ City direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00% Number of taxpayers 802 798 793 774 782 775 754 765 723 730 702 Source: Illinois Department of Revenue City of Galesburg, Illinois Taxable Sales by Category Last Ten Fiscal Years (Unaudited) 155 City Fiscal Direct Knox State Year Rate County of Illinois Total 2011 1.00000 1.25000 6.25000 8.50000 2012 1.00000 1.25000 6.25000 8.50000 2013 1.00000 1.25000 6.25000 8.50000 2014 1.00000 1.25000 6.25000 8.50000 2015 1.00000 1.50000 6.25000 8.75000 2016 1.00000 1.50000 6.25000 8.75000 2017 1.00000 1.50000 6.25000 8.75000 2018 1.00000 1.50000 6.25000 8.75000 2019 1.00000 1.50000 6.25000 8.75000 2020 1.00000 1.50000 6.25000 8.75000 Source: City records and Illinois Department of Revenue City of Galesburg, Illinois Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years 156 General Less Amount Net Debt General Total Fiscal Obligation Available in General Notes Per Obligation Revenue Notes Primary Per Year Bonds Debt Service Bonded Debt Payable Capita Bonds Bonds Payable Government Capita 2011 7,785,822$ -$ 7,785,822$ 50,000$ 241.83$ 9,430,000$ 9,685,000$ 728,031$ 27,678,853$ 6.60 1.422 835.56$ 2012 7,046,395 - 7,046,395 25,000 218.87 9,130,000 9,515,000 784,487 26,500,882 6.07 1.364 809.31 2013 7,635,260 - 7,635,260 15,450 241.20 8,820,000 9,279,151 745,303 26,495,164 6.57 1.319 812.97 2014 6,817,947 - 6,817,947 7,725 215.31 8,500,000 9,103,893 703,897 25,133,462 5.83 1.266 771.26 2015 5,959,563 - 5,959,563 - 188.02 8,487,752 8,918,557 662,492 24,028,364 5.06 1.218 737.19 2016 14,608,908 - 14,608,908 - 460.91 8,080,920 8,728,140 621,086 32,039,054 12.24 1.063 991.23 2017 13,339,503 - 13,339,503 - 433.54 16,473,747 - 579,680 30,392,930 10.86 1.553 968.94 2018 12,026,203 - 12,026,203 - 390.85 15,600,530 - 538,274 28,165,007 9.72 1.391 897.88 2019 10,715,222 - 10,715,222 - 345.81 14,705,090 - 496,869 25,917,181 8.44 1.267 820.38 2020 9,981,369 - 9,981,369 - 325.24 8,604,161 - 455,463 19,040,993 7.73 *605.61 Note: Details regarding the City's outstanding debt may be found in the notes to the basic financial statements. As a Home Rule entity, under the State of Illinois Constitution, the City has no statutory debt limit. *Personal income not available for 2020. Actual Property Percentage of Personal Business-Type Activities City of Galesburg, Illinois Ratios of Net General Bonded Debt Outstanding by Type Value Income Last Ten Fiscal Years (Unaudited) Governmental Activities Percentage of 157 Estimated Share of Debt Overlapping Governmental Unit Outstanding Debt (2) Knox County 5,616,941$ 41.94 %2,355,745.06$ Community Unit School District #205 77,281,000 79.08 61,113,814.80 Carl Sandburg College, Dist No 518 13,946,049 17.98 2,507,499.61 Subtotal, overlapping debt 65,977,059 City Direct Debt 9,981,369 100.00 9,981,369 Total direct and overlapping debt 75,958,428$ Sources: Knox County Circuit Clerk and City Records (1) The percentage of overlap is based on assessed property values. Applicable (2) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City City of Galesburg, Illinois Direct and Overlapping Governmental Activities Debt For the Year Ended December 31, 2020 (Unaudited) Percentage to City(1) Estimated 158 Personal Fiscal Income (1)Per Capita Median School Year Population (2)(000's)Income (1)Age (2)Enrollment (3) 2011 32,022 1,891,630$ 35,891$ 39.7 4,330 8.7 % 2012 31,745 1,883,034 36,003 39.7 4,603 8.4 2013 31,655 1,950,992 37,426 39.8 4,662 8.9 2014 31,665 1,929,080 37,138 39.0 4,575 7.0 2015 31,696 1,917,722 37,332 40.0 4,558 6.2 2016 31,696 1,924,370 37,794 40.4 4,475 6.4 2017 30,769 1,919,763 37,957 40.8 4,365 5.4 2018 30,769 1,986,520 39,748 41.1 4,294 5.7 2019 30,986 2,006,004 40,363 40.3 4,203 5.0 2020 30,689 **40.3 3,931 8.6 Sources: (1)Information received from U.S. Department of Commerce, Bureau of Economic Analysis. (2)Information received from the US Census Bureau (3)Information received from Galesburg Community School District #205 (4)Information received from Illinois Department of Employment Security Note: * Information not available Unemployment Rate (4) City of Galesburg, Illinois Demographic and Economic Statistics Last Ten Fiscal Years (Unaudited) 159 Employer Employees Rank Employees Rank Burlington Northern 1,031 1 4.88 %1,115 1 4.25 % School District #205 626 2 2.97 594 3 2.27 OSF Healthcare 593 3 2.81 973 2 3.71 Dick Blick Company 558 4 2.64 500 5 1.91 Knox College 500 5 2.37 407 9 1.55 Galesburg Cottage Hospital 346 6 1.64 Bridgeway 324 7 1.53 450 6 1.72 Henry C Hill Correctional Facility 288 8 1.36 City of Galesburg 236 9 1.12 Gates Corporation 221 10 1.05 HyVee 574 4 2.19 Carl Sandburg College 430 7 1.64 Knox County 420 8 1.60 Walmart 370 10 1.41 4,723 22.37 %5,833 22.26 % Sources: The Knox County Area Partnership's website http://www.knoxpartnership.com/top-employers/ Note: The 2010 total county employment was 26,206 The 2020 total county employment was 21,110 Employment Percentage County Employment 20102020 of Total of Total City of Galesburg, Illinois Principal Employers Current Year and Ten Years Ago (Unaudited) Percentage County 160 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Functions/Program General Government: Legislative 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 City manager 4.20 4.20 4.40 4.80 4.80 5.00 5.00 5.00 5.00 4.00 City clerk 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 City treasurer - - - - 2.00 2.00 2.00 2.00 2.00 2.00 Finance*6.80 7.00 7.00 8.50 8.50 8.50 10.00 10.00 10.00 10.00 Information services 2.70 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00 Legal 0.50 0.50 0.90 0.90 1.00 1.00 1.00 1.00 1.00 2.00 Community development 1.05 8.70 9.25 9.95 10.15 11.25 11.25 11.25 11.25 11.25 Transit*18.50 - - - - - - - - - Economic Development**1.15 0.95 0.95 0.95 0.65 - - 4.00 4.00 4.00 Public Safety: Police officers 47.00 49.10 50.00 50.00 50.00 50.00 52.00 52.00 52.00 52.00 Firefighters and officers 43.00 42.00 42.00 43.00 42.00 43.00 44.00 46.00 46.00 45.00 Civilians 25.00 24.90 24.00 25.00 27.00 27.00 27.00 27.00 27.00 27.00 Inspections 6.90 6.70 4.70 4.70 3.40 3.75 3.75 3.75 3.75 3.75 Neighborhood Enhancement Div - - - - 3.00 5.00 5.00 Public Works: Administration - - - - - - 2.00 2.00 2.00 2.00 Buildings and grounds 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Engineering 6.60 6.40 6.30 6.30 8.00 8.00 6.00 6.00 6.00 6.00 Street and traffic maintenance 10.75 10.60 10.60 11.95 16.00 16.00 15.00 17.00 17.00 17.00 Stormwater utility 4.30 4.45 5.00 4.20 4.15 - - - - - Fleet services 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 Airport 0.70 0.50 - - - - - - - - Cemetery 0.50 0.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Parks and Recreation: Park and recreation administration 0.95 1.00 1.00 1.00 2.00 2.00 - - - - Park 10.85 11.00 11.00 11.00 10.00 10.00 9.00 10.00 10.00 10.00 Recreation 2.00 2.00 2.00 2.00 3.00 3.00 5.00 6.00 6.00 6.00 Forestry 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Golf Course(s)2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 Water 21.80 23.25 23.25 22.80 21.50 21.50 20.00 19.00 19.00 19.00 Refuse 0.25 0.25 Total 237 227 226 231 238 236 236 249 252 251 Source: City Departments Note: * In 2020, Galesburg Transit was absorbed by the City & Transit separated from Community Development ** 1.5 Position in Finance were paid by Water beginning 1/1/15 *** 3 Economic Development positions were grant funded 2010-2013 City of Galesburg, Illinois Full-Time Equivalent City Government Employees By Functions/Programs Last Ten Fiscal Years (Unaudited) Full-Time Equivalent Employees 161 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function/Program General government: Handivan riders 20,855 22,214 18,896 18,281 19,761 19,065 18,441 20,036 18,388 11,790 Transit riders 148,734 154,802 159,166 151,889 151,903 155,857 139,400 129,795 154,367 87,192 Police: Physical arrests 3,577 3,263 3,097 2,539 2,491 2,208 2,140 2,580 3,045 2,072 Traffic violations 2,900 2,541 2,516 1,776 2,191 2,209 2,539 3,616 2,965 1,658 Service calls 41,872 43,465 41,936 40,467 43,537 43,193 39,928 44,037 45,364 44,120 Property loss 602,921 802,082 1,167,064 544,159 812,086 923,509 420,652 844,413 100,271 767,396 Fire: Total actual fires 122 108 87 106 122 106 107 86 63 72 Total of all fire department calls 3,628 3,595 3,760 4,005 4,286 4,289 4,408 4,845 4,849 4,376 Building safety: Total building permits 381 382 381 391 429 429 348 305 298 247 Total value all permits 5,258,217 16,134,138 15,602,476 14,272,108 19,619,073 9,305,584 16,468,496 21,854,303 6,766,680 3,535,821 Parks and Recreation: Golf rounds played 28,000 30,000 22,000 22,000 22,973 24,220 23,164 21,151 20,624 23,648 Number of trees trimmed 213 391 511 305 458 652 501 231 375 304 Number of daily camp sites rented 3,395 3,425 2,620 2,620 2,780 2,105 3,355 2,880 3,668 3,211 Recreation classes offered**140 142 125 165 84 152 437 302 273 237 Aquatic general admissions*14,716 14,322 12,558 11,847 12,488 12,459 16,148 15,311 16,264 3,599 Sports field participation (teams)61 64 69 75 112 215 271 242 218 76 Recreation facility rentals 833 876 915 975 848 811 926 1,663 1,964 999 Public Works Total airport acres mowed 265 265 265 265 265 265 265 265 265 265 Total lineal feet of runways maintained 9,394 9,394 9,394 9,394 9,394 9,394 9,394 9,394 9,394 9,394 Number of runway & taxiway lights & sign 511 511 511 511 511 511 511 511 511 511 Total cemetery acres maintained 68 68 68 68 68 68 68 68 68 68 Number of cemetery plots sold 39 35 53 41 56 60 44 37 49 63 Number of grave openings 63 82 84 84 84 73 77 64 78 74 Refuse: Refuse collected (ton)9,595 9,041 9,192 9,071 9,144 9,352 9,004 9,081 9,741 9,311 Yard waste collected (ton)2,384 2,269 2,353 2,496 3,040 2,735 2,034 2,076 2,590 2,473 Recycle collected (ton)1,280 1,386 1,470 1,547 1,701 1,537 1,431 1,475 1,447 1,431 Water: Number of water services 12,625 12,720 12,718 12,636 12,557 12,472 12,659 12,547 12,536 12,608 Source: Various city departments Note: *General admissions does not include season pass holders **New software more accurately tracked offered classes, including changing the method used in counting group classes such as swim lessons During 2020 some services were severely impacted due to the Covid-19 coronavirus pandemic. City of Galesburg, Illinois Operating Indicators By Function/Program Last Ten Fiscal Years (Unaudited) 162 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function/Program Police: Stations 1 1 1 1 1 1 1 1 1 1 Fire: Stations 3 3 3 3 3 3 3 3 3 3 Parks and recreation: Acreage 748 748 748 748 748 748 748 748 748 748 Parks 26 26 26 26 26 26 26 26 26 27 Golf course 1 1 1 1 1 1 1 1 1 1 Baseball/softball diamonds 13 13 13 13 13 13 13 13 13 13 Soccer/football fields 2 2 2 2 2 2 2 2 2 2 Basketball courts 12 12 12 12 12 12 12 12 12 12 Outdoor tennis courts 10 10 10 10 10 10 10 10 10 10 Parks with playground equipment 19 19 19 19 19 19 19 19 16 16 Public works: Miles of streets 176 176 176 176 176 176 176 176 176 177 Miles of sidewalks 122 122 122 122 122 122 122 122 122 123 Number of traffic signal heads maintained 469 469 476 476 476 476 476 503 503 503 Total number of street lights owned and maintained 510 510 510 559 581 581 858 879 879 879 Total number of street lights rented 3,407 3,414 3,415 3,415 3,415 3,415 3,415 3,406 3,409 3,410 Number of vehicles and equipment maintained 257 254 234 234 246 240 250 252 252 252 Total miles of water mains 202 202 202 202 202 203 203 203 203 203 Number of fire hydrants 1,410 1,410 1,410 1,410 1,410 1,420 1,420 1,420 1,420 1,449 Number of water valves 1,910 1,910 1,910 1,910 1,910 1,930 1,930 1,930 1,930 2,239 Source: Various city departments City of Galesburg, Illinois Capital Asset Statistics By Function/Program Last Ten Fiscal Years (Unaudited) Reporting and insights from 2020 audit: City of Galesburg, Illinois December 31, 2020 Executive summary June 25, 2021 To the Mayor and City Council City of Galesburg 55 West Tompkins Street Galesburg, Illinois 61401 We have completed our audit of the financial statements of the City of Galesburg (the "City”) for the year ended December 31, 2020, and have issued our report thereon dated June 25, 2021. This letter presents communications required by our professional standards. Your audit should provide you with confidence in your financial statements. The audit was performed based on information obtained from meetings with management, data from your systems, knowledge of your City’s operating environment and our risk assessment procedures. We strive to provide you clear, concise communication throughout the audit process and of the final results of our audit. Additionally, we have included information on key risk areas the City of Galesburg should be aware of in your strategic planning. We are available to discuss these risks as they relate to your organization’s financial stability and future planning. If you have questions at any point, please connect with us: - Jason Coyle, CPA, Partner: jason.coyle@bakertilly.com or +1 (630) 645 6205 - Michael E. Malatt, CPA, Senior Manager: michael.malatt@bakertilly.com or +1 (630) 645 6226 Sincerely, Baker Tilly US, LLP Jason Coyle, CPA, Partner Baker Tilly US, LLP, trading as Baker Tilly, is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each describes itself as such. Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s behalf. None of Baker Tilly International, Baker Tilly US, LLP nor any of the other member firms of Baker Tilly International has any liability for each other’s acts or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited. Table of contents Executive summary ....................................................................................................................................... 2 Responsibilities ............................................................................................................................................. 5 Audit status.................................................................................................................................................... 8 Audit approach and results ......................................................................................................................... 10 Accounting changes relevant to the City of Galesburg ............................................................................... 19 Trending challenges and opportunities for organizations ........................................................................... 22 Appendix A: Management representation letter .................................................................................... 26 Appendix B: Two-way communication regarding your audit ............................................................... 32 THIS COMMUNICATION IS INTENDED SOLELY FOR THE INFORMATION AND USE OF THOSE CHARGED WITH GOVERNANCE, AND, IF APPROPRIATE, MANAGEMENT, AND IS NOT INTENDED TO BE AND SHOULD NOT BE USED BY ANYONE OTHER THAN THESE SPECIFIED PARTIES. Responsibilities City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 5 Responsibilities Our responsibilities As your independent auditor, our responsibilities include: - Planning and performing the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high level of assurance. - Assessing the risks of material misstatement of the financial statements, whether due to fraud or error. Included in that assessment is a consideration of the City’s internal control over financial reporting. - Performing appropriate procedures based upon our risk assessment. - Evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management. - Forming and expressing an opinion based on our audit about whether the financial statements prepared by management, with the oversight of those charged with governance: - Are free from material misstatement - Present fairly, in all material respects and in accordance with accounting principles generally accepted in the United States of America - Performing tests related to compliance with certain provisions of laws, regulations, contracts and grants, as required by Government Auditing Standards - Considering internal control over compliance with requirements that could have a direct and material effect on major federal programs to design tests of both controls and compliance with identified requirements - Forming and expressing an opinion based on our audit in accordance with OMB’s Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) about the entity’s compliance with requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs. We are also required to communicate significant matters related to our audit that are relevant to the responsibilities of those charged with governance, including: - Qualitative aspects of the City’s accounting practice including policies, accounting estimates and financial statement disclosures - Significant difficulties encountered - Disagreements with management - Corrected and uncorrected misstatements - Internal control matters - Significant estimates - Other findings or issues arising from the audit City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 6 Management's responsibilities Management Auditor Prepare and fairly present the financial statements Our audit does not relieve management or those charged with governance of their responsibilities Establish and maintain effective internal control over financial reporting and compliance with laws, regulations, contracts and grants Compliance with the types of requirements described in the OMB Compliance Supplement An audit includes consideration of internal control over financial reporting, but not an expression of an opinion on those controls While our audit provides a reasonable basis for our opinion on compliance, it does not provide a legal determination on compliance with those requirements. Provide us with written representations at the conclusion of the audit See Appendix A for a copy of management's representations Audit status City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 8 Audit status Significant changes to the audit plan There were no significant changes made to either our planned audit strategy or to the significant risks and other areas of emphasis identified during the performance of our risk assessment procedures. Audit approach and results City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 10 Audit approach and results Planned scope and timing Audit focus Based on our understanding of the City and environment in which you operate, we focused our audit on the following key areas: - Key transaction cycles - Areas with significant estimates Our areas of audit focus were informed by, among other things, our assessment of materiality. Materiality in the context of our audit was determined based on specific qualitative and quantitative factors combined with our expectations about the City’s current year results. Key areas of focus and significant findings Significant risks of material misstatement A significant risk is an identified and assessed risk of material misstatement that, in the auditor’s professional judgment, requires special audit consideration. Within our audit, we focused on the following areas below. Significant risk areas Testing approach Conclusion Management override of controls Incorporate unpredictability into audit procedures, emphasize professional skepticism and utilize audit team with industry expertise Procedures identified provided sufficient evidence for our audit opinion Improper revenue recognition due to fraud Confirmation or validation of certain revenues supplemented with detailed predictive analytics based on non-financial data and substantive testing of related receivables Procedures identified provided sufficient evidence for our audit opinion City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 11 Other key areas of emphasis We also focused on other areas that did not meet the definition of a significant risk, but were determined to require specific awareness and a unique audit response. Other key areas of emphasis Testing approach Cash and investments Revenues and receivables General disbursements Payroll Pension and OPEB liabilities Long-term debt Self-insurance Capital assets Fund balance / net position calculations Financial reporting and required disclosures City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 12 Internal control matters We considered the City’s internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing an opinion on the financial statements. We are not expressing an opinion on the effectiveness of the City’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We identified the following deficiency as a significant deficiency: - Segregation of duties A cornerstone of effective internal control is the existence of policies to support segregation of duties; this involves separation of the initiation, execution, approval and recording responsibilities for transactions. Due to the relatively small size of the City’s finance office, we noted that the deficiency listed below is related to proper segregation of duties. In the water billing process, two employees have access to enter account information with no subsequent review of adjustments. The Senior Accountant reviews the reconciliation of the daily deposits. However, while not part of her normal duties, the Senior Accountant also has access to enter account information and account adjustments into the City's billing system. An independent review of any manual billing adjustments by someone outside of the water billing process should be conducted during each billing cycle. To further strengthen controls around water billing, a monthly predictive analysis of revenue expected versus revenue collected is also recommended. Management Response: In the water billing process, it would likely be noticed by a customer if a transaction was changed in his account since he should receive notification of his account beginning balance during the next month’s billing cycle, which at that point, he would notify the City that his previous account balance was different or previously paid. For manual adjustments, based on experience, it is believed that there is a minimal risk, since utility billing adjustments are a minimal occurrence. Currently, and in the past, the Finance Director does a review of a monthly report showing the current year's revenue booked versus the prior year's revenue and does inquire, for example, if the revenue from one year to another drastically changes. The City’s written response to the significant deficiency identified in our audit has not been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 13 Required communications Qualitative aspect of accounting practices - Accounting policies: Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we have advised management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing accounting policies was not changed during 2020. We noted no transactions entered into by the City during the year for which accounting policies are controversial or for which there is a lack of authoritative guidance or consensus or diversity in practice. - Accounting estimates: Accounting estimates, including fair value estimates, are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements, the degree of subjectivity involved in their development and because of the possibility that future events affecting them may differ significantly from those expected. The following estimates are of most significance to the financial statements: Estimate Management’s process to determine Baker Tilly’s conclusions regarding reasonableness Net pension liability/asset and related deferrals Evaluation of information provided by the Illinois Municipal Retirement Fund and other actuarial studies Reasonable in relation to the financial statements as a whole Self-insurance claims Historical claims analysis and report provided by a 3rd party administrator Reasonable in relation to the financial statements as a whole Net OPEB liability and related deferrals Key assumptions set by management with the assistance of a third party actuary Reasonable in relation to the financial statements as a whole Depreciation Evaluate estimated useful life of the asset and original acquisition value Reasonable in relation to the financial statements as a whole There have been no significant changes made by management to either the processes used to develop the particularly sensitive accounting estimates, or to the significant assumptions used to develop the estimates, noted above. - Financial statement disclosures: The disclosures in the financial statements are neutral, consistent and clear. Significant difficulties encountered during the audit We encountered no significant difficulties in dealing with management and completing our audit. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 14 Other audit findings or issues We encountered no other audit findings or issues that require communication at this time. We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Disagreements with management Professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Uncorrected misstatements and corrected misstatements Professional standards require us to accumulate misstatements identified during the audit, other than those that are clearly trivial, and to communicate accumulated misstatements to management. The schedule within the Appendix summarizes the uncorrected misstatements, other than those that are clearly trivial, that we presented to management and the material corrected misstatements that, in our judgment, may not have been detected except through our auditing procedures. In our judgment, neither the uncorrected misstatements nor the misstatements that management corrected, either individually or in the aggregate, indicate matters that could have had a significant effect on the Company’s financial reporting process. Management has determined that the effects of the uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. Significant unusual transactions There have been no significant transactions that are outside the normal course of business for the City or that otherwise appear to be unusual due to their timing, size or nature. Management’s consultations with other accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing or accounting matters. Written communications between management and Baker Tilly The Appendix includes copies of other material written communications, including a copy of the management representation letter. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 15 Compliance with laws and regulations We did not identify any non-compliance with laws and regulations during our audit. We will issue a separate document which contains the results of our audit procedures to comply with the Uniform Guidance. Fraud We did not identify any known or suspected fraud during our audit. Going concern Pursuant to professional standards, we are required to communicate to you, when applicable, certain matters relating to our evaluation of the City’s ability to continue as a going concern for a reasonable period of time but no less than 12 months from the date the financial statements are issued or available to be issued, including the effects on the financial statements and the adequacy of the related disclosures, and the effects on the auditor's report. No such matters or conditions have come to our attention during our engagement. Group audits The City’s financial statements include information that was audited by other auditors as follows: - The Town of the City of Galesburg, a blended component unit of the City - The Galesburg Public Library Foundation, a component of the Galesburg Public Library, a discretely presented component unit of the City In addition, if we had any concerns about the quality of work of the other auditors, if there were any limitations related to the group audit or if there was any fraud or suspected from involving group management, component management, employees who have significant roles in group-wide controls or others in which material misstatement of the group financial statements has or may have resulted from fraud we would be required to report those to you. We have not identified any circumstances that are required to be reported. Independence We are not aware of any relationships between Baker Tilly and the City that, in our professional judgment, may reasonably be thought to bear on our independence. Related parties We did not have any significant findings or issues arise during the audit in connection with the City’s related parties. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 16 Other matters We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information which accompanies the financial statements but is not RSI. With respect to the supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the other information, which accompanies the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 17 Nonattest services The following nonattest services were provided by Baker Tilly: - Financial statement preparation - Preparation of Part II of the Data Collection Form - State of Illinois Annual Financial Report preparation None of these nonattest services constitute an audit under generally accepted auditing standards, including Government Auditing Standards. Accounting changes relevant to the City of Galesburg City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 19 Accounting changes relevant to the City of Galesburg Future accounting standards update GASB Statement Number Description Potentially Impacts you Effective Date 87 Leases 12/31/22* 89 Accounting for Interest Incurred before the End of a Construction Period 12/31/21* 91 Conduit Debt 12/31/22* 92 Omnibus 2020 12/31/22* 93 Replacement of Interfund Bank Offered Rates 12/31/22* 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements 12/31/23 96 Subscription-Based Information Technology Arrangements 12/31/23 97 Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans 12/31/22 *The statements listed above through Statement No. 93 had their required effective dates postponed by one year with the issuance of Statement No. 95, Postponement of Effective Dates of Certain Authoritative Guidance, with the exception of Statement No. 87 which was postponed by one and a half years. The effective date reflected above is the required revised implementation date. Further information on upcoming GASB pronouncements. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 20 Preparing for the new lease standard GASB’s new single model for lease accounting will be effective soon. This standard will require governments to identify and evaluate contracts that convey control of the right to use another entity’s nonfinancial asset as specified in the contract for a period of time in an exchange or exchange-like transaction. Contracts meeting the criteria for control, term and other items within the standard will result in recognizing a right to use asset and lease liability or a receivable and deferred inflow of resources. We recommend City review this standard and start planning now as to how this will affect your financial reporting. We recommend that you begin by completing an inventory of all contracts that might meet the definition of a lease. The contract listing should include key terms of the contracts such as: - Description of contract - Underlying asset - Contract term - Options for extensions and terminations - Service components, if any - Dollar amount of lease In addition, City should begin to establish a lease policy to address the treatment of common lease types, including a dollar threshold for each lease. We are available to discuss this further and help you develop an action plan. Learn more about GASB 87. Planning for the new conduit debt reporting Conduit debt includes arrangements where there are three separate parties involved including a third party that is obligated for payment, a debt holder or lender and an issuing party which is often a government. This standard provides additional criteria for identifying and classifying conduit debt with the intent of providing consistency in how the debt is recorded and reported in governmental financial statements. The City should identify any existing debt arrangements involving third-party obligors and evaluate how those arrangements will be reported under the new standard in order to determine the potential impact of this standard on future financial reporting. Trending challenges and opportunities for organizations City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 22 Trending challenges and opportunities for organizations Management and governing bodies must keep the future in mind as they evaluate strategies to achieve future growth. Keeping a balance between risk and sustainability is key, and organizations need to think beyond their immediate needs to their long-term goals. Economic uncertainty, coupled with key risk areas and fast-paced technology change, make strategic planning complex. Begin the discussion with your management team to find your path to your future. Turning toward recovery and growth Many organizations are focusing on the strategic restart and ramp up of their operations. With great uncertainty about what recovery will look like–or how long it will take–it is essential for your organization to understand the scenarios you may face and plan your path back to growth. We can help you chart a way forward that will enhance and maximize your value, minimize further disruption and keep your workforce safe. Recommendation Follow our road map to reopen, recover and reset. Compliance with federal awards Challenge The COVID-19 crisis has had a significant effect on the nation, including recipients of federal awards resulting from various congressional acts. Federal funding adds an increased level of scrutiny and brings new challenges around compliance, reporting and administration. Finance and spending departments are operating in unprecedented times as they manage and administer these funds while also remaining economically viable, maintaining operations and adapting to the “new normal.” Recommendation Learn more about compliance for federal funds obtained for pandemic response efforts. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 23 Recession proofing measures Challenge Ever aware of the need to balance the needs of diverse constituents against constrained revenue streams and conflicting priorities, public leaders strive to effectively deploy scarce resources while maintaining the highest levels of accountability and transparency. In times of crisis, additional challenges emerge to maintain essential services, ensure citizen safety, protect their workforce and jumpstart programs to mitigate negative local economic impacts–all while focusing on planning for long-term effects of revenue shortages and the subsequent recovery. Developing strategic clarity, aligning resources with priorities, strengthening performance, optimizing processes and leveraging technology are imperative. Recommendation Learn about proactive measures to insulate your organization from financial hardship and to optimize your organization’s performance. Recruiting and hiring Challenge Public sector entities in need of key workforce personnel, such as city or county managers and administrators, city or county attorneys, fire chiefs, police chiefs and other departmental directors, may find themselves in an unenviable position during a pandemic. Organizations need the talent, but a pandemic can disrupt essential business processes and cause apprehension about access to desirable candidates. Hiring leaders should proactively discuss what-if scenarios, evaluate short-term and long-term hiring priorities, and plan for situations where immediate recruitment is imperative. Recommendation Learn the key considerations and actions for recruiting and hiring in a crisis. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 24 Risk assessment Challenge Organizations today manage ever-expanding priorities in a constantly evolving, disruptive risk environment. Undetected risks, insufficient internal controls and inefficient business processes may negatively impact not only the entity but also its workforce and the community at large. Risk assessment and internal audit prove essential to identifying top risks and the appropriateness of response in order to: – Manage risk and compliance – Enhance governance and strategy – Optimize operations – Gain assurance around key functions and processes that contribute toward meeting organizational goals Recommendation Learn about the key considerations for the risk assessment process and internal audit planning. Economic development Challenge In today’s complex economic landscape, communities face the daunting challenge of rebuilding their local economies. Restoring the momentum of economic expansion and investment to enhance quality of life for residents and produce long-term financial gain for the community is at the forefront of concerns. Whether attracting growth to maximize opportunity built around community strengths or accounting for the many unknowns caused by major disruptions, a robust economic development strategy is essential to recovery. Recommendation Learn about the advantages of creating an economic development strategic plan and the framework to follow. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 25 Harnessing data and analytics for strategic insight and decision-making Challenge In crisis and recovery, organizations are investing in advanced analytic solutions to help them not only make better decisions faster and more consistently, but also to improve operational efficiency and performance. Of all the business analytics available, advanced analytic solutions should be at the top of your priority list given the impact it can have on your business. Recommendation Learn more about data & analytics strategy and roadmaps, MDM and data process re-engineering, AI strategy, data visualization and other digital and analytic capabilities. Information technology and cybersecurity Challenge While return-to-work scenarios are being developed, it is likely that remote workforces will remain a reality for many organizations in the short- to mid-term. Though many organizations have been able to adapt on a short-term basis, some will not be prepared for long-term operation on a remote and virtual basis. Organizations should increase monitoring of invasive cyber events, given the likely increase in hackers sending out fake emails, website links and ransomware attacks – and also consider: ― Adequacy of IT controls and security ― Performance of remote infrastructure supporting operations ― Improvements to remote applications for communication, collaboration and workflow ― Alternatives for data entry, work and information flow Recommendation Learn more about information technology and cybersecurity, including System & Organization Controls reporting. Appendix A: Management representation letter Total Total Change in Beginning Total Assets/Total Liabilities/Net Position/Total Expenses/Net Position/Net Position/ Deferred Outflows Deferred Inflows Fund Balances Revenues Expenditures Fund Balances Fund Balances Governmental Activities (1,087,410) 816,064 271,346 - 58,881 58,881 212,465 Water Fund - 33,542 - - (28,374) - (5,168) Financial Statements Effect - Debit (Credit) to Financial Statement Total December 31, 2020 City of Galesburg SUMMARY OF UNCORRECTED FINANCIAL STATEMENT MISSTATEMENTS Appendix B: Two-way communication regarding your audit City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 33 Two-way communication regarding your audit As part of our audit of your financial statements, we are providing communications to you throughout the audit process. Auditing requirements provide for two-way communication and are important in assisting the auditor and you with more information relevant to the audit. As this past audit is concluded, we use what we have learned to begin the planning process for next year’s audit. It is important that you understand the following points about the scope and timing of our next audit: a. We address the significant risks of material misstatement, whether due to fraud or error, through our detailed audit procedures. b. We will obtain an understanding of the five components of internal control sufficient to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing and extent of further audit procedures. We will obtain a sufficient understanding by performing risk assessment procedures to evaluate the design of controls relevant to an audit of financial statements and to determine whether they have been implemented. We will use such knowledge to: - Identify types of potential misstatements. - Consider factors that affect the risks of material misstatement. - Design tests of controls, when applicable, and substantive procedures. c. We will not express an opinion on the effectiveness of internal control over financial reporting or compliance with laws, regulations and provisions of contracts or grant programs. For audits performed in accordance with Government Auditing Standards, our report will include a paragraph that states that the purpose of the report is solely to describe the scope of testing of internal control over financial reporting and compliance and the result of that testing and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance and that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance. The paragraph will also state that the report is not suitable for any other purpose. d. The concept of materiality recognizes that some matters, either individually or in the aggregate, are important for fair presentation of financial statements in conformity with generally accepted accounting principles while other matters are not important. In performing the audit, we are concerned with matters that, either individually or in the aggregate, could be material to the financial statements. Our responsibility is to plan and perform the audit to obtain reasonable assurance that material misstatements, whether caused by errors or fraud, are detected. Our audit will be performed in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards and OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 34 We will not express an opinion on the effectiveness of internal control over financial reporting or compliance with laws, regulations, and provisions of contracts or grant programs. For audits done in accordance with Government Auditing Standards and the Uniform Guidance, our report will include a paragraph that states that the purpose of the report is solely to describe (a) the scope of testing of internal control over financial reporting and compliance and the result of that testing and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance, (b) the scope of testing internal control over compliance for major programs and major program compliance and the result of that testing and to provide an opinion on compliance but not to provide an opinion on the effectiveness of internal control over compliance and, (c) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance and the Uniform Guidance, in considering internal control over compliance and major program compliance. The paragraph will also state that the report is not suitable for any other purpose. e. Your financial statements contain components, as defined by auditing standards generally accepted in the United States of America, which we also audit. f. In connection with our audit, we intend to place reliance on the audit of the financial statements of the Galesburg Public Library Foundation, a discretely presented component unit of the City, and the Town of the City of Galesburg, a blended component unit of the City, as of December 31, 2021 and for the year then ended completed by Blucker Kneer & Associates, Ltd. All necessary conditions have been met to allow us to make reference to the component auditors. We are very interested in your views regarding certain matters. Those matters are listed here: a. We typically will communicate with your top level of management unless you tell us otherwise. b. We understand that the governing board has the responsibility to oversee the strategic direction of your organization, as well as the overall accountability of the entity. Management has the responsibility for achieving the objectives of the entity. c. We need to know your views about your organization’s objectives and strategies, and the related business risks that may result in material misstatements. d. We anticipate that the City will receive an unmodified opinion on its financial statements. e. Which matters do you consider warrant particular attention during the audit, and are there any areas where you request additional procedures to be undertaken? f. Have you had any significant communications with regulators or grantor agencies? g. Are there other matters that you believe are relevant to the audit of the financial statements? Also, is there anything that we need to know about the attitudes, awareness and actions of the governing body concerning: a. The entity’s internal control and its importance in the entity, including how those charged with governance oversee the effectiveness of internal control? b. The detection or the possibility of fraud? We also need to know if you have taken actions in response to developments in financial reporting, laws, accounting standards, governance practices, or other related matters, or in response to previous communications with us. City of Galesburg, Illinois | 2020 Audit 6/25/2021 © 2020 Baker Tilly US, LLP Page | 35 With regard to the timing of our audit, here is some general information. If necessary, we may do preliminary financial audit work during the months of December or January. Our final financial fieldwork is scheduled during the spring to best coincide with your readiness and report deadlines. After fieldwork, we wrap up our financial audit procedures at our office and may issue drafts of our report for your review. Final copies of our report and other communications are issued after approval by your staff. This is typically 6-12 weeks after final fieldwork, but may vary depending on a number of factors. Keep in mind that while this communication may assist us with planning the scope and timing of the audit, it does not change the auditor’s sole responsibility to determine the overall audit strategy and the audit plan, including the nature, timing and extent of procedures necessary to obtain sufficient appropriate audit evidence. We realize that you may have questions on what this all means, or wish to provide other feedback. We welcome the opportunity to hear from you. User: Printed:07/13/2021 - 3:27PM tmiller Transactions by Account Batch:00020.07.2021 Accounts Payable Account Number Vendor AmountDescription PO No Date 001-0000-10407-00 Amanda Jennings Cell Phone Allow - AJennings 18.0006/30/2021 001-0000-10407-00 Stratus Networks, Inc 07/21 Service - Teen Court 12.2607/13/2021 001-0000-10407-00 Stratus Networks, Inc 07/21 Service - General Assistance 39.0907/13/2021 001-0000-10407-00 Stratus Networks, Inc 07/21 Service - Election 36.7307/13/2021 001-0000-10407-00 Stratus Networks, Inc 07/21 Service - Township Assessor 69.2407/13/2021 001-0000-10407-00 Stratus Networks, Inc 07/21 Service 486.6907/13/2021 001-0000-10701-00 IAFC - Intl Assn of Fire Chiefs 01/22-06/22 Membership - RHovind 107.5007/13/2021 001-0000-10701-00 ILEAS (IL Law Enforce. Alarm Sys.)01/22-06/22 Membership Dues 120.0007/13/2021 001-0000-10701-00 IL Tax Increment Assoc 01/22-06/22 Dues 425.0007/13/2021 001-0000-10706-00 Andrew Swanson Meals - Field Training Officer course- Fairview Hghts-ASwanson 175.0007/13/2021 001-0000-10801-00 Advance Auto Parts Oil filters 18.8406/30/2021 001-0000-10801-00 Map Automotive of Peoria Batteries 297.2406/30/2021 001-0000-10802-00 Herr Petroleum Corp 1068 gal diesel #2 2,927.00 000009180807/13/2021 001-0000-31015-00 Suzi's Refund of overpayment for gaming terminal license 1,500.0007/13/2021 001-0000-37900-00 Stratus Networks, Inc 07/21 Service -14.3007/13/2021 6,218.29Subtotal for Divison: 0000 001-0105-51000-00 Baker Tilly Virchow Krause, LLP 2020 Fiscal Year Audit 12,420.00 000009195507/13/2021 001-0105-54000-00 Stratus Networks, Inc 07/21 Service 11.1507/13/2021 001-0105-54000-00 Bradley Hix Cell Phone Allowance 36.0006/30/2021 001-0105-61000-00 Peter Schwartzman Plants for City Hall office 74.1607/13/2021 12,541.31Subtotal for Divison: 0105 001-0110-54000-00 Stratus Networks, Inc 07/21 Service 30.4307/13/2021 001-0110-54000-00 Todd Thompson Cell Phone Allowance 36.0006/30/2021 001-0110-61000-00 Office Specialists, Inc.Files 45.0607/13/2021 001-0110-61000-00 Office Specialists, Inc.Business cards, folders, paper 63.3807/13/2021 174.87Subtotal for Divison: 0110 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 1 21-8013 Account Number Vendor AmountDescription PO No Date 001-0115-51000-00 SpringbrookSoftware LLC 06/21 Pay Pad Fees 42.0007/13/2021 001-0115-54000-00 Stratus Networks, Inc 07/21 Service 66.9007/13/2021 001-0115-54000-00 Kelli Bennewitz Cell Phone Allowance 36.0006/30/2021 144.90Subtotal for Divison: 0115 001-0120-54000-00 Stratus Networks, Inc 07/21 Service 22.3007/13/2021 22.30Subtotal for Divison: 0120 001-0145-51000-00 Petentler Investigations Summons 50.0007/13/2021 001-0145-54000-00 Stratus Networks, Inc 07/21 Service 11.1507/13/2021 001-0145-54000-00 Bradley Nolden Cell Phone Allowance 36.0006/30/2021 97.15Subtotal for Divison: 0145 001-0160-59516-00 Matthew Reed 06/21 AV Services for City Meetings 252.0007/13/2021 001-0160-59516-00 Jeffrey R Cervantez 06/21 AV services for City meetings 240.0007/13/2021 001-0160-59521-00 Knox County Humane Society 08/21 Animal Control Contract 20,698.00 000009180207/13/2021 001-0160-59523-00 Galesburg Downtown Council Replacement Tax Pmt 2021 FY 3,463.1107/13/2021 24,653.11Subtotal for Divison: 0160 001-0205-51000-00 SpringbrookSoftware LLC 06/21 Pay Pad Fees 66.6307/13/2021 001-0205-54000-00 Kraig Boynton Cell Phone Allowance 30.0006/30/2021 001-0205-54000-00 Stratus Networks, Inc 07/21 Service 100.3407/13/2021 001-0205-54000-00 Gloria Osborn Cell Phone Allowance 36.0006/30/2021 232.97Subtotal for Divison: 0205 001-0207-54000-00 Kerzi Peterson Cell Phone Allowance 36.0006/30/2021 001-0207-54000-00 Stratus Networks, Inc 07/21 Service 33.4507/13/2021 001-0207-54000-00 Orlando Lucero Cell Phone Allowance 36.0006/30/2021 001-0207-54000-00 Lewis Doney II Cell Phone Allowance 36.0006/30/2021 141.45Subtotal for Divison: 0207 001-0305-54000-00 Stephen Gugliotta Cell Phone Allowance 36.0006/30/2021 001-0305-54000-00 Stratus Networks, Inc 07/21 Service 39.0207/13/2021 001-0305-55000-00 IL Tax Increment Assoc 07/21-12/21 Dues 425.0007/13/2021 001-0305-61000-00 Office Specialists, Inc.Ink 37.9807/13/2021 538.00Subtotal for Divison: 0305 001-0306-51000-00 SpringbrookSoftware LLC 06/21 Pay Pad Fees 6.0007/13/2021 001-0306-54000-00 Richard Slagel Cell Phone Allowance 30.0006/30/2021 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 2 Account Number Vendor AmountDescription PO No Date 001-0306-54000-00 Tammera Matejewski Cell Phone Allowance 30.0006/30/2021 001-0306-54000-00 Judy Guenseth Cell Phone Allowance 30.0006/30/2021 001-0306-54000-00 Stratus Networks, Inc 07/21 Service 94.7707/13/2021 001-0306-54000-00 Robert Elsbury Cell Phone Allowance 30.0006/30/2021 001-0306-55400-00 Werner Restoraton Services, Inc.Board up - 29 Public Sq 1,404.3407/13/2021 001-0306-55400-00 Werner Restoraton Services, Inc.Board up - 502 Burgland 464.3407/13/2021 001-0306-55400-00 Werner Restoraton Services, Inc.Board up - 460 W South St 344.3407/13/2021 001-0306-55400-00 Werner Restoraton Services, Inc.Board up - 286 Fulton 1,268.5407/13/2021 001-0306-55400-00 Kendall Zimmerman Pick up trash from the curb - 827 Florence 40.0007/13/2021 001-0306-55400-00 Werner Restoraton Services, Inc.Board up -1041 Lancaster 396.3407/13/2021 001-0306-55400-00 Kendall Zimmerman Pick up trash - 348 E Third St 45.0007/13/2021 001-0306-55400-00 Kendall Zimmerman Mow and trim property - 679 US Hwy 150 200.0007/13/2021 001-0306-55400-00 Werner Restoraton Services, Inc.Board up -1150 W Carl Sandburg Dr 584.3407/13/2021 001-0306-55400-00 Kendall Zimmerman Mow and trim property - 683 Day 50.0007/13/2021 001-0306-55400-00 Kendall Zimmerman Haul away 2 TVs - 675 Whiting Ave 35.0007/13/2021 001-0306-55400-00 Kendall Zimmerman Mow and trim property - 344 N Chambers 50.0007/13/2021 001-0306-55400-00 Kendall Zimmerman Mow and trim property - 355 E Second S 100.0007/13/2021 001-0306-61000-00 Office Specialists, Inc.Duct tape 22.6807/13/2021 5,225.69Subtotal for Divison: 0306 001-0410-51000-00 SpringbrookSoftware LLC 06/21 Pay Pad Fees 6.0007/13/2021 001-0410-54000-00 Aaron Gavin Cell Phone Allowance 30.0006/30/2021 001-0410-54000-00 Wayne Carl Cell Phone Allowance 30.0006/30/2021 001-0410-54000-00 Malinda Davis Cell Phone Allowance 30.0006/30/2021 001-0410-54000-00 Jamie West Cell Phone Allowance 30.0006/30/2021 001-0410-54000-00 Stratus Networks, Inc 07/21 Service 89.2007/13/2021 001-0410-54000-00 Brian Vorva Cell Phone Allowance 30.0006/30/2021 001-0410-61000-00 Office Specialists, Inc.Pencil sharpener 6.5207/13/2021 001-0410-61000-00 Office Specialists, Inc.Pencils, sharpener 13.5407/13/2021 265.26Subtotal for Divison: 0410 001-0445-54000-00 Stratus Networks, Inc 07/21 Service 46.6907/13/2021 001-0445-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #152 40.0007/13/2021 001-0445-55500-00 Map Automotive of Peoria Core return -48.0006/30/2021 001-0445-55500-00 Map Automotive of Peoria Core charge 48.0006/30/2021 001-0445-55500-00 Heritage-Crystal Clean, LLC Used oil pickup 25.5007/13/2021 001-0445-55700-00 Royal Cleaning Services 07/21 Janitorial Services 242.0007/13/2021 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 3 Account Number Vendor AmountDescription PO No Date 001-0445-57500-00 Aramark Uniform Serv. Inc.06/21 Service 50.0007/13/2021 001-0445-57500-00 Aramark Uniform Serv. Inc.07/21 Service 50.0007/13/2021 001-0445-62500-00 Pomp's Tire - Galesburg Tire #169 127.1707/13/2021 001-0445-63000-00 Galesburg Welding, Inc Metal 413.4507/13/2021 001-0445-63000-00 Automotive Equipment Sales & Service Mount head protectors 118.4807/13/2021 001-0445-63000-00 Advance Auto Parts Paint/primer 78.3007/13/2021 1,191.59Subtotal for Divison: 0445 001-0450-52000-00 Ameren Illinois 06/21 Electricity #9048316063 27.3306/30/2021 001-0450-52000-00 Ameren Illinois 06/21 Electricity #4414444021 144.9806/30/2021 001-0450-54000-00 JR Knaack Cell Phone Allowance 30.0006/30/2021 001-0450-54000-00 Stratus Networks, Inc 07/21 Service 41.5807/13/2021 001-0450-54000-00 Justin McNaught Cell Phone Allowance 30.0006/30/2021 001-0450-55500-00 Pomp's Tire - Galesburg Flat repair #122 227.5307/13/2021 001-0450-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #107 41.0007/13/2021 001-0450-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #142 40.0007/13/2021 001-0450-55500-00 Nichols Diesel Service, Inc.Repairs to unit #107 2,283.0507/13/2021 001-0450-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #106 40.0007/13/2021 001-0450-61000-00 Office Specialists, Inc.Cork board 254.6107/13/2021 001-0450-62500-00 Advance Auto Parts Oil filter #111 7.3407/13/2021 001-0450-62500-00 Altorfer Inc.Temp switch #304 99.1107/13/2021 001-0450-62500-00 Pomp's Tire - Galesburg Balancing bags #107 60.0007/13/2021 001-0450-62500-00 Martin Equipment of Illinois, Inc.Grommet, pedal #122 570.5407/13/2021 001-0450-62500-00 Napa Auto Parts Cable lug #111 4.5907/13/2021 001-0450-66500-00 Michael Todd & Co., Inc.Yellow caution tape, open back shovel, tar rake,sand bags, fence 803.1307/13/2021 001-0450-68500-00 Gierke-Robinson Co Water repellent 2,918.0007/13/2021 7,622.79Subtotal for Divison: 0450 001-0505-51000-00 Campion, Barrow & Assoc.Fire Services Testing 440.0007/13/2021 440.00Subtotal for Divison: 0505 001-0510-51000-00 Bridgeway Training Services 208 lbs Secure document destruction 31.2007/13/2021 001-0510-54000-00 William T. Boynton Cell Allowance 30.0006/30/2021 001-0510-54000-00 Bryan Anderson Cell Phone Allowance 30.0006/30/2021 001-0510-54000-00 Daniel Hostens Cell Phone Allowance 30.0006/30/2021 001-0510-54000-00 Patrick Kisler Cell Phone Allowance 30.0006/30/2021 001-0510-54000-00 Steffanie Cromien Cell Phone Allowance 30.0006/30/2021 001-0510-54000-00 Russell Idle Cell Phone Allowance 36.0006/30/2021 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 4 Account Number Vendor AmountDescription PO No Date 001-0510-54000-00 Kevin Legate Cell Phone Allowance 30.0006/30/2021 001-0510-54000-00 Ryne Sage Cell Phone Allowance 30.0006/30/2021 001-0510-54000-00 Stratus Networks, Inc 07/21 Service 233.2207/13/2021 001-0510-54000-00 Jason Shaw Cell Phone Allowance 30.0006/30/2021 001-0510-55000-00 ILEAS (IL Law Enforce. Alarm Sys.)07/21-12/21 Membership Dues 120.0007/13/2021 001-0510-57500-00 Burke Cleaners, Inc 06/21 Police Uniform Cleaning as per agreement. 290.18 000009189707/13/2021 001-0510-61000-00 Office Specialists, Inc.Markers 10.6907/13/2021 001-0510-61000-00 Intoximeters, Inc Thermal paper rolls 45.0007/13/2021 001-0510-61000-00 Office Specialists, Inc.Spoons 18.6307/13/2021 001-0510-61000-00 Office Specialists, Inc.Plates, batteries 100.9707/13/2021 001-0510-61000-00 Office Specialists, Inc.Labels,notebooks 133.1707/13/2021 001-0510-62500-00 Yemm Ford, Inc Hood strut #24 45.9007/13/2021 001-0510-62500-00 Yemm Ford, Inc Deflector #26 153.9507/13/2021 001-0510-62500-00 Yemm Ford, Inc Head rest #24 175.6707/13/2021 001-0510-67500-00 Robin Kunzer Alterations - CBeaupre 28.0007/13/2021 001-0510-67500-00 Ray O'Herron Co., Inc.Vest - Ingles 235.3607/13/2021 001-0510-67500-00 Ray O'Herron Co., Inc.Dbl mag taser hsg 183.7907/13/2021 001-0510-67500-00 Ray O'Herron Co., Inc.1 pr pants - Buccalo 67.3507/13/2021 001-0510-67500-00 Ray O'Herron Co., Inc.Pants - Sweeney 121.3507/13/2021 001-0510-67500-00 Dawn Vandell Alterations 158.0007/13/2021 001-0510-67500-00 Ray O'Herron Co., Inc.Vest - Ingles, Howard, Swanson 1,470.8507/13/2021 001-0510-69000-00 Ray O'Herron Co., Inc.Ammo 1,370.6007/13/2021 5,269.88Subtotal for Divison: 0510 001-0550-54000-00 Stratus Networks, Inc 07/21 Service 110.5707/13/2021 001-0550-54000-00 Amanda Jennings Cell Allowance 18.0006/30/2021 001-0550-54000-00 Cameron Lemaster Cell Phone Allowance 36.0006/30/2021 001-0550-61000-00 Office Specialists, Inc.Date stamp, correction tape 55.8407/13/2021 001-0550-61000-00 Office Specialists, Inc.Misc supplies 229.7207/13/2021 001-0550-67500-00 Midwest Uniform Supply, Inc Polo shirt - SSwanson 27.3807/13/2021 001-0550-67500-00 Midwest Uniform Supply, Inc 2 shirts - BKilpatrick 54.1807/13/2021 001-0550-67500-00 Midwest Uniform Supply, Inc 3 Polo shirts - SDunham 55.7407/13/2021 587.43Subtotal for Divison: 0550 001-0605-54000-00 Donald Brackett Cell Phone Allowance 30.0006/30/2021 001-0605-54000-00 Randy Hovind Cell Phone Allowance 36.0006/30/2021 001-0605-54000-00 David Farrell Cell Phone Allowance 30.0006/30/2021 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 5 Account Number Vendor AmountDescription PO No Date 001-0605-54000-00 Stratus Networks, Inc 07/21 Service 258.7607/13/2021 001-0605-54000-00 Derek Perry Cell Phone Allowance 30.0006/30/2021 001-0605-55000-00 IAFC - Intl Assn of Fire Chiefs 07/21-12/21 Membership - RHovind 107.5007/13/2021 001-0605-55500-00 Eastern Iowa Tire Replaced tire #51 51.4007/13/2021 001-0605-55700-00 Howe Overhead Doors, Inc.Adjusted timing on operator, installed lock collar 180.0007/13/2021 001-0605-62500-00 Eastern Iowa Tire Tire #51 442.5007/13/2021 001-0605-65000-00 Office Specialists, Inc.Spray bottles 28.8007/13/2021 001-0605-65000-00 Office Specialists, Inc.Clay oil absorbant 76.2607/13/2021 001-0605-65500-00 Municipal Emergency Services, Inc Swivel gaskets 43.0007/13/2021 001-0605-66000-00 Howe Overhead Doors, Inc.Lock collar 10.0007/13/2021 001-0605-67500-00 Midwest Uniform Supply, Inc 5 Perf tees - DRogers 70.0007/13/2021 001-0605-67500-00 Midwest Uniform Supply, Inc Polo - JPedigo 40.9907/13/2021 1,435.21Subtotal for Divison: 0605 001-0630-55700-00 Mechanical Service Inc.Repairs to AC unit 161.0007/13/2021 001-0630-66000-00 Mechanical Service Inc.Parts to repair AC unit 22.5207/13/2021 183.52Subtotal for Divison: 0630 Subtotal for Fund 001 66,985.72 011-0000-66000-00 Tazewell County Asphalt Co, Inc Hot-Mix Asphalt Surface & Binder for 2021 748.50 000009182107/13/2021 011-0000-66000-00 River City Supply, Inc.Hot-Mix Asphalt Surface & Binder for 2021 789.21 000009181807/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.Portland Cement Concrete Class SI for 2021 408.00 000009182607/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.Portland Cement Concrete Class SI for 2021 535.50 000009182607/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.Portland Cement Concrete Class SI for 2021 306.00 000009182607/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.High Performance patching mix for 2021 239.83 000009182507/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.Portland Cement Concrete Class SI for 2021 535.50 000009182607/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.High Performance patching mix for 2021 187.53 000009182507/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.Portland Cement Concrete Class SI for 2021 204.00 000009182607/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.Portland Cement Concrete Class SI for 2021 204.00 000009182607/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.Portland Cement Concrete Class SI for 2021 663.00 000009182607/13/2021 011-0000-66000-00 Galesburg Builders Supply, Inc.Portland Cement Concrete Class PP2 mix for 2021 299.75 000009182907/13/2021 011-0000-78010-00 Gunther Construction Co., a div. of UCM, IncRoadway Portion of Kellogg St Reconstruction 11,781.17 000009196607/13/2021 011-0000-78010-00 Treasurer State of IL, IDOT S Seminary St roadway costs - rebuild MFT portion 116,458.69 000009183407/13/2021 011-0000-78070-00 Gunther Construction Co., a div. of UCM, IncSidewalk Portion of Kellogg St Reconstruction 17,659.86 000009196607/13/2021 151,020.54Subtotal for Divison: 0000 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 6 Account Number Vendor AmountDescription PO No Date Subtotal for Fund 011 151,020.54 013-0000-51000-00 Bruner, Cooper and Zuck, Inc.Engineering agreement for the preparation of bid documents and p 1,750.83 000009168407/13/2021 013-0000-67500-00 Ray O'Herron Co., Inc.Vest - Ingles, Howard, Swanson 795.8507/13/2021 2,546.68Subtotal for Divison: 0000 Subtotal for Fund 013 2,546.68 014-0000-51000-00 Bruner, Cooper and Zuck, Inc.Material Testing Services for the 2021 Construction season 510.00 000009192707/13/2021 014-0000-51000-00 Klingner & Associates, P.C. - Architectural GroupMaterial Testing Services for the 2021 Construction Season 1,817.00 000009192807/13/2021 014-0000-55700-00 Treasurer State of IL, IDOT Reimbursement for traffic signal work 2,124.4907/13/2021 014-0000-55700-00 Brandt Construction Co Michigan Ave pavement patching 32,983.00 000009194507/13/2021 014-0000-66000-00 Galesburg Builders Supply, Inc.Controlled Low Strength Material (CLSM) for 2021 580.00 000009183007/13/2021 014-0000-66000-00 Galesburg Builders Supply, Inc.Controlled Low Strength Material (CLSM) for 2021 1,160.00 000009183007/13/2021 014-0000-66000-00 Galesburg Builders Supply, Inc.Controlled Low Strength Material (CLSM) for 2021 522.00 000009183007/13/2021 39,696.49Subtotal for Divison: 0000 Subtotal for Fund 014 39,696.49 016-0000-54000-00 Timothy Spitzer Cell Phone Allowance 30.0006/30/2021 016-0000-54000-00 Lane Mings Cell Phone Allowance 30.0006/30/2021 016-0000-54000-00 Paul Vannaken Cell Phone Allowance 30.0006/30/2021 016-0000-54000-00 Kyle A Winbigler Cell Phone Allowance 30.0006/30/2021 016-0000-54000-00 Travis Smith Cell Phone Allowance 30.0006/30/2021 016-0000-54000-00 Mark McLaughlin Cell Allowance 30.0006/30/2021 016-0000-66500-00 Modern Marketing Drug tests, barricade tape 1,082.2907/13/2021 1,262.29Subtotal for Divison: 0000 Subtotal for Fund 016 1,262.29 018-0000-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #131 40.0007/13/2021 018-0000-55500-00 Nichols Diesel Service, Inc.Replaced compressor and orifice tube #131 872.8207/13/2021 018-0000-66000-00 Core & Main Frame, back, grate, beehinve grate 3,840.0007/13/2021 4,752.82Subtotal for Divison: 0000 Subtotal for Fund 018 4,752.82 019-1905-51500-00 Register Mail, Inc.Rec ads #18053 833.3307/13/2021 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 7 Account Number Vendor AmountDescription PO No Date 019-1905-51500-00 WMOI - FM Radio ads 250.0007/13/2021 019-1905-51500-00 Register Mail, Inc.Notice to bidders ads #20710 212.4407/13/2021 019-1905-54000-00 Lauren Dynes Cell Allowance 30.0006/30/2021 019-1905-54000-00 Stratus Networks, Inc 07/21 Service 63.8807/13/2021 019-1905-54000-00 Chelsea Moberg Cell Phone Allowance 30.0006/30/2021 019-1905-54000-00 Anthony Oligney-Estill Cell Phone Allowance 36.0006/30/2021 019-1905-59511-00 Galesburg Tourism Fund 06/21 Tourism Agreement 15,833.3307/13/2021 019-1905-61000-00 Office Specialists, Inc.Binder, reinforcements, pens, copyholder 17.5807/13/2021 019-1905-61000-00 Office Specialists, Inc.Folders 6.9907/13/2021 019-1905-61700-00 AboutGolf Global Inc PC Computer for Golf Simulator 1,500.00 000009195107/13/2021 18,813.55Subtotal for Divison: 1905 019-1910-54000-00 Stratus Networks, Inc 07/21 Service 19.2807/13/2021 019-1910-55700-00 Royal Cleaning Services 07/21 HTAS 550.0007/13/2021 019-1910-55700-00 Royal Cleaning Services 07/21 Janitorial services 899.0007/13/2021 1,468.28Subtotal for Divison: 1910 019-1911-54000-00 Stratus Networks, Inc 07/21 Service 77.1207/13/2021 019-1911-55700-00 Lambasio, Inc.Install flush valve in mens locker room 249.0007/13/2021 019-1911-55700-00 Royal Cleaning Services 07/21 HTAS 550.0007/13/2021 019-1911-55700-00 Royal Cleaning Services 07/21 Janitorial Services 1,568.0007/13/2021 019-1911-57500-00 Aramark Uniform Serv. Inc.06/21 Service 15.0007/13/2021 019-1911-57500-00 Aramark Uniform Serv. Inc.07/21 Service 15.0007/13/2021 019-1911-65000-00 Office Specialists, Inc.Liners 69.2107/13/2021 2,543.33Subtotal for Divison: 1911 019-1915-52000-00 Ameren Illinois 06/21 Electricity #7756699015 548.3206/30/2021 019-1915-52300-00 Ameren Illinois 06/21 Heat #0883556016 54.8606/30/2021 019-1915-54000-00 Stratus Networks, Inc 07/21 Service 41.5807/13/2021 019-1915-54000-00 Don Miles Cell Phone Allowance 30.0006/30/2021 019-1915-54000-00 Michael Markley Cell Phone Allowance 30.0006/30/2021 019-1915-54000-00 Travis Huffman Cell Phone Allowance 30.0006/30/2021 019-1915-54000-00 Jason Asbury Cell Phone Allowance 30.0006/30/2021 019-1915-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #503 40.0007/13/2021 019-1915-55500-00 Glass Specialty Inc Install windshield #512 270.3407/13/2021 019-1915-55500-00 Kaser Power Equipment Inc Cleaned fuel system and carburetor 75.0007/13/2021 019-1915-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #502 40.0007/13/2021 019-1915-55700-00 J.P. Benbow, Inc.Repair gas leaks 101.0007/13/2021 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 8 Account Number Vendor AmountDescription PO No Date 019-1915-55700-00 Knox County Landfill 06/21 Service 719.3607/13/2021 019-1915-55700-00 Royal Cleaning Services 07/21 Janitorial services 476.0007/13/2021 019-1915-56000-00 Terry Allen, Inc Bursie Williams Area 75.00 000009192507/13/2021 019-1915-56000-00 Terry Allen, Inc Bursie Williams Area 60.00 000009192507/13/2021 019-1915-56000-00 Terry Allen, Inc East Boat Ramp 75.00 000009192507/13/2021 019-1915-56000-00 Terry Allen, Inc Pickard Road - Toilet Rental 75.00 000009192507/13/2021 019-1915-56000-00 Terry Allen, Inc Peck Park 75.00 000009192507/13/2021 019-1915-57500-00 Aramark Uniform Serv. Inc.06/21 Service 44.9407/13/2021 019-1915-57500-00 Aramark Uniform Serv. Inc.07/21 Service 44.9407/13/2021 019-1915-62500-00 Pomp's Tire - Galesburg Tires #541 139.0007/13/2021 019-1915-62510-00 Herr Petroleum Corp 248 gal diesel #2, 278 gal reg unleaded 1,412.63 000009180607/13/2021 019-1915-62510-00 Herr Petroleum Corp 552.3 gal diesel #2, 734.7 gal reg unleaded 3,499.74 000009180607/13/2021 019-1915-65000-00 Office Specialists, Inc.Gloves 219.7507/13/2021 019-1915-65000-00 Office Specialists, Inc.Liners 75.9307/13/2021 019-1915-65500-00 Kaser Power Equipment Inc Spark plugs, fuel tank vent, air filter kit, trimmer line 102.1307/13/2021 019-1915-65500-00 Certified Laboratories Premalube 438.5307/13/2021 019-1915-66000-00 Galesburg Electric, Inc.IDEC timer multi-purpose relay 141.2207/13/2021 019-1915-66000-00 Galesburg Electric, Inc.MEP load center int ns 75.6807/13/2021 9,040.95Subtotal for Divison: 1915 019-1920-54000-00 Bryan Luedtke Cell Phone Allowance 30.0006/30/2021 019-1920-54000-00 Stratus Networks, Inc 07/21 Service 30.4307/13/2021 019-1920-57500-00 Aramark Uniform Serv. Inc.06/21 Service 25.2407/13/2021 019-1920-57500-00 Aramark Uniform Serv. Inc.07/21 Service 25.2407/13/2021 019-1920-61000-00 Office Specialists, Inc.Toner 200.1307/13/2021 019-1920-62510-00 Herr Petroleum Corp 118.2 gal diesel #2, 166.3 gal reg unleaded 762.54 000009180407/13/2021 019-1920-62510-00 Herr Petroleum Corp 188.4 gal diesel #2, 257 gal reg unleaded 1,210.92 000009180407/13/2021 019-1920-64000-00 HORNUNG'S GOLF PRODUCTS, INC Grips 37.4907/13/2021 019-1920-64000-00 HORNUNG'S GOLF PRODUCTS, INC Grips, gloves 748.1007/13/2021 019-1920-64000-00 SRIXON/Cleveland Golf/XXIO Golf balls 387.6007/13/2021 019-1920-64000-00 SRIXON/Cleveland Golf/XXIO Golf balls 98.1007/13/2021 019-1920-64125-00 Smithfield Direct, LLC Misc concessions 29.9007/13/2021 019-1920-64125-00 Smithfield Direct, LLC Misc concessions 89.7007/13/2021 019-1920-64125-00 Atlantic Coca-Cola Soda, powerade, tea, water 454.1807/13/2021 019-1920-64125-00 Atlantic Coca-Cola Soda, water, powerade 394.2607/13/2021 019-1920-64125-00 Butch's Pizza Inc.Pizza 29.4007/13/2021 019-1920-64125-00 Boxcar Express Sandwiches 1,126.7007/13/2021 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 9 Account Number Vendor AmountDescription PO No Date 019-1920-65000-00 Office Specialists, Inc.Cleaner, tissue, urinal screens 74.2707/13/2021 019-1920-88300-00 M&M Golf Cars, LLC 2021 lease of 48 golf carts and 1 utility vehicle as per bid. I 5,335.97 000009181207/13/2021 11,090.17Subtotal for Divison: 1920 019-1925-54000-00 Stratus Networks, Inc 07/21 Service 11.1507/13/2021 019-1925-56000-00 Terry Allen, Inc Lake Storey Park - Toilet Rental 1,080.00 000009192507/13/2021 019-1925-56000-00 Terry Allen, Inc Lake Storey Park - Toilet Rental 170.00 000009192507/13/2021 019-1925-56000-00 Terry Allen, Inc Lake Storey Park - Toilet Rental 120.00 000009192507/13/2021 019-1925-56000-00 Terry Allen, Inc Campground - Toilet Rental 300.00 000009192507/13/2021 019-1925-66000-00 Galesburg Electric, Inc.Misc supplies 512.3307/13/2021 2,193.48Subtotal for Divison: 1925 019-1935-54000-00 Stratus Networks, Inc 07/21 Service 44.6007/13/2021 019-1935-57500-00 Aramark Uniform Serv. Inc.07/21 Service 176.9007/13/2021 019-1935-57500-00 Aramark Uniform Serv. Inc.06/21 Service 176.9007/13/2021 398.40Subtotal for Divison: 1935 019-1940-51400-00 Hailey Glasnovich Summer Swim Team Coach 2nd Installment 500.0007/13/2021 019-1940-51400-00 Samantha Schaefer Summer Swim Teach Coach - 2nd Installment 625.0007/13/2021 019-1940-51400-00 Melissa Pettit Summer Swim Team Coach - 2nd Installment 625.0007/13/2021 019-1940-54500-00 American Red Cross Lifeguarding course 40.0007/13/2021 019-1940-64125-00 Atlantic Coca-Cola Soda, water, powerade 101.5407/13/2021 1,891.54Subtotal for Divison: 1940 019-1945-55500-00 Lock & Key Shop LLC Services of a locksmith, safe lock, batteries 385.0007/13/2021 019-1945-65000-00 Office Specialists, Inc.Soap 41.9207/13/2021 426.92Subtotal for Divison: 1945 019-1950-54000-00 Stratus Networks, Inc 07/21 Service 11.1507/13/2021 019-1950-55700-00 Sugden Electric Replaced motor starter & thermal overloads 2,225.6607/13/2021 019-1950-64125-00 Gold Medal - Central Illinois, LLC Misc concessions 262.4007/13/2021 019-1950-68500-00 Tri-State Water Carboy deposit -18.0007/13/2021 019-1950-68500-00 Hawkins, Inc Misc chemicals 637.1107/13/2021 019-1950-68500-00 Tri-State Water Chlorine 228.0007/13/2021 019-1950-68500-00 Tri-State Water Misc chemicals 43.3007/13/2021 019-1950-68500-00 Tri-State Water 50# soda ash 25.5007/13/2021 3,415.12Subtotal for Divison: 1950 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 10 Account Number Vendor AmountDescription PO No Date 019-1965-54000-00 Aaron Young Cell Phone Allowance 30.0006/30/2021 019-1965-57500-00 Aramark Uniform Serv. Inc.06/21 Service 26.7607/13/2021 019-1965-57500-00 Aramark Uniform Serv. Inc.07/21 Service 31.3607/13/2021 88.12Subtotal for Divison: 1965 019-1975-55500-00 Scott Equipment, LLC Repairs to chainsaw 156.0007/13/2021 019-1975-62500-00 Advance Auto Parts Oil filter #104 3.1407/13/2021 019-1975-62500-00 Yemm Chevrolet, Inc-Geo Center cap #104 34.8807/13/2021 019-1975-65500-00 Scott Equipment, LLC Cylinder, gaskets, needle cage, roller bearing, hose 272.1207/13/2021 466.14Subtotal for Divison: 1975 Subtotal for Fund 019 51,836.00 020-0000-10701-00 IL Environmental Protection Agency 01/22-06/22 Annual DPDES Fee #ILR002956(A) 250.0007/13/2021 020-0000-51000-00 Hutchison Engineering, Inc Hutchison Engineering 5 year contract for Municipal Airport 2,483.62 000009179307/13/2021 020-0000-51000-00 Hutchison Engineering, Inc Hutchison Engineering 5 year contract for Municipal Airport 3,035.68 000009179307/13/2021 020-0000-55000-00 IL Environmental Protection Agency 07/21-12/21 Annual DPDES Fee #ILR002956(A) 250.0007/13/2021 020-0000-55700-00 J.P. Benbow, Inc.Installed new thermostat 490.7007/13/2021 020-0000-62500-00 Advance Auto Parts Oil filter #351 29.5807/13/2021 6,539.58Subtotal for Divison: 0000 Subtotal for Fund 020 6,539.58 023-0000-55420-00 Statham & Long, LLC Title search - 440 W South St 150.0007/13/2021 150.00Subtotal for Divison: 0000 Subtotal for Fund 023 150.00 024-0000-52000-00 Ameren Illinois 06/21 Electricity #5346260034 79.3906/30/2021 024-0000-52000-00 Ameren Illinois 06/21 Electricity #5244167035 27.2206/30/2021 024-0000-52300-00 Ameren Illinois 06/21 Heat #3293493011 50.3706/30/2021 024-0000-55700-00 Hendricks Pump Service Inc Service call 125.0007/13/2021 024-0000-83100-00 National Stearman Foundation, Inc CO#1 Additional Funds added to City Contribution for Stearman Bu 75.00 000009189107/13/2021 024-0000-83100-00 Salvation Army External agency funding 5,000.0007/13/2021 024-0000-83100-00 National Stearman Foundation, Inc CO#1 Additional Funds added to City Contribution for Stearman Bu 3,429.50 000009189107/13/2021 8,786.48Subtotal for Divison: 0000 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 11 Account Number Vendor AmountDescription PO No Date Subtotal for Fund 024 8,786.48 030-0000-10801-00 Gillig Service kit 229.5006/30/2021 229.50Subtotal for Divison: 0000 030-0320-52300-00 Ameren Illinois 06/21 Heat #6235036022 18.8206/30/2021 030-0320-54000-00 Stratus Networks, Inc 07/21 Service 38.5607/13/2021 030-0320-55500-00 Eastern Iowa Tire Tire disposal fee 34.0006/30/2021 030-0320-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #462 41.0006/30/2021 030-0320-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #464 40.0006/30/2021 030-0320-57500-00 Cintas, Inc 06/21 Service 31.6406/30/2021 030-0320-62500-00 Yemm Ford, Inc Bolts 21.8006/30/2021 225.82Subtotal for Divison: 0320 030-0370-52300-00 Ameren Illinois 06/21 Heat #6235036022 43.9406/30/2021 030-0370-54000-00 Stratus Networks, Inc 07/21 Service 93.3807/13/2021 030-0370-54000-00 Pamelyn Usher Cell Phone Allowance 30.0006/30/2021 030-0370-55500-00 Getz Fire Equipment Co., Inc.Annual Fire Extinguisher Service 684.1006/30/2021 030-0370-55500-00 Harvey Brothers, Inc.Repair alternator 336.6006/30/2021 030-0370-55500-00 Cummins Sale & Service Replaced harness and temp sensors 3,426.4806/30/2021 030-0370-55700-00 First Glass, Inc.Install window in bus shelter 319.0006/30/2021 030-0370-55700-00 Galesburg Termite & Pest Control 06/21 Service 45.0006/30/2021 030-0370-57500-00 Cintas, Inc 06/21 Service 212.1206/30/2021 030-0370-61000-00 Office Specialists, Inc.Calculator, ink, scissors, tape, duster 256.3606/30/2021 030-0370-61000-00 Office Specialists, Inc.Labels 19.0906/30/2021 030-0370-61000-00 Office Specialists, Inc.Ink, paper 96.9106/30/2021 030-0370-62500-00 Napa Auto Parts Misc shop supplies 18.5106/30/2021 030-0370-62500-00 Napa Auto Parts Perfect rubb comp qt 28.9906/30/2021 030-0370-65000-00 Office Specialists, Inc.Tissue, towels 89.5706/30/2021 030-0370-66500-00 Napa Auto Parts Hose 20.2606/30/2021 030-0370-66500-00 Napa Auto Parts New pig absorb matpad 56.9906/30/2021 5,777.30Subtotal for Divison: 0370 Subtotal for Fund 030 6,232.62 049-0000-83100-00 Galesburg Public Library TIF Incentive Reimbursement 20,000.0007/13/2021 20,000.00Subtotal for Divison: 0000 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 12 Account Number Vendor AmountDescription PO No Date Subtotal for Fund 049 20,000.00 053-0000-66000-00 Bruner, Cooper and Zuck, Inc.Provide structural drawings for streets building 1,200.00 000009196107/13/2021 1,200.00Subtotal for Divison: 0000 Subtotal for Fund 053 1,200.00 059-0000-78010-00 Treasurer State of IL, IDOT S Seminary St roadway construction costs - Utility Tax Portion 71,949.73 000009183407/13/2021 71,949.73Subtotal for Divison: 0000 Subtotal for Fund 059 71,949.73 061-0000-15401-00 Treasurer State of IL, IDOT S Seminary St water main replacement 18,451.15 000009183407/13/2021 061-0000-15401-00 Klingner & Associates, P.C. - Architectural GroupProfessional services for design & engineering of Gravel Pack We 6,475.85 000009191907/13/2021 061-0000-20101-00 AUSTIN WHETSTINE Refund Check 062114-001, 78 ALLENS AVE 59.4006/30/2021 061-0000-20101-00 KAYLYN TAYLOR Refund Check 054401-001, 1602 WILLARD ST 63.7106/30/2021 061-0000-20101-00 HANNAH YOUNG Refund Check 053039-000, 1392 N FARNHAM ST 3.7106/30/2021 061-0000-20101-00 ENRIQUE LOPEZ MENDEZ Refund Check 058489-000, 247 W SECOND ST 43.1606/30/2021 061-0000-20101-00 HANNAH YOUNG Refund Check 053039-000, 1392 N FARNHAM ST 114.9306/30/2021 061-0000-20101-00 SAUDIA CARSON Refund Check 023546-002, 914 BROWN AVE 31.4106/30/2021 061-0000-20101-00 LUKE ALMAGUER Refund Check 061015-000, 535 BURGLAND AVE 35.6806/30/2021 061-0000-20101-00 JAMES HARRIS Refund Check 058646-006, 1086 MULBERRY ST 83.6706/30/2021 061-0000-20101-00 LAURA GIGERICH Refund Check 063590-000, 1945 WASHINGTON ST 90.7906/30/2021 061-0000-20101-00 DORIAN KIRKPATRICK Refund Check 062992-001, 2357 LILLIE LN 102.1106/30/2021 061-0000-20101-00 DYLAN HOPPING Refund Check 059710-001, 74 ALLENS AVE 48.3506/30/2021 061-0000-20101-00 DORIAN KIRKPATRICK Refund Check 062992-001, 2357 LILLIE LN 2.6506/30/2021 061-0000-20101-00 TERESA POWELL Refund Check 047611-000, 1366 RUSSELL AVE 10.1706/30/2021 061-0000-51000-00 SpringbrookSoftware LLC 06/21 Pay Pad Fees 133.2407/13/2021 061-0000-51000-00 Klingner & Associates, P.C. - Architectural GroupEngineering Agreement for PFAS Water Treatment study 2,839.42 000009192007/13/2021 061-0000-51000-00 PDC Laboratories, Inc.Water testing 14.0007/13/2021 061-0000-51000-00 PDC Laboratories, Inc.Water testing 14.0007/13/2021 061-0000-51000-00 PDC Laboratories, Inc.Water testing 18.0007/13/2021 061-0000-52000-00 Illinois Power Marketing 06/21 Service #GMCGAL1002 18,190.2806/30/2021 061-0000-52000-00 American Electric Power 06/21 Electricity 12,243.5606/30/2021 061-0000-52300-00 Ameren Illinois 06/21 Heat #1017455691 84.1006/30/2021 061-0000-54000-00 Stratus Networks, Inc 07/21 Service 127.7607/13/2021 061-0000-54000-00 Timothy Fey Cell Phone Allowance 30.0006/30/2021 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 13 Account Number Vendor AmountDescription PO No Date 061-0000-54000-00 Eric Heiden Cell Allowance 30.0006/30/2021 061-0000-54000-00 Michael Mackey Cell Phone Allowance 30.0006/30/2021 061-0000-54000-00 Shelby Schwieter Cell Phone Allowance 30.0006/30/2021 061-0000-54000-00 Mark Schwieter Cell Phone Allowance 30.0006/30/2021 061-0000-55700-00 Waste Management, Inc.07/21 Service 17.3607/13/2021 061-0000-55700-00 Four Seasons Pest Control 06/21 Service 45.0007/13/2021 061-0000-55700-00 Waste Management, Inc.07/21 Service 97.1407/13/2021 061-0000-55700-00 Royal Cleaning Services 07/21 Janitorial Services 434.0007/13/2021 061-0000-59300-00 Getz Fire Equipment Co., Inc.First aid supplies 37.1507/13/2021 061-0000-61000-00 Office Specialists, Inc.Paper, pens 28.5607/13/2021 061-0000-62500-00 Map Automotive of Peoria Intake manifold #169 436.7507/13/2021 061-0000-65000-00 Office Specialists, Inc.Duster 32.7407/13/2021 061-0000-65000-00 Office Specialists, Inc.Liners, towels 55.5707/13/2021 061-0000-65000-00 Office Specialists, Inc.Tissue, towels, liners 162.1607/13/2021 061-0000-65500-00 Flowpoint Environmental Systems Inc Keypad upgrade 2,090.0007/13/2021 061-0000-66000-00 Water Products Co. of IL., Inc.PVC pipe, 10" macro two bolt couplings 1,153.6007/13/2021 061-0000-66000-00 Galesburg Builders Supply, Inc CONTROLLED LOW STRENGTH MATERIAL (CLSM) - DELIVERED 1,160.00 000009183107/13/2021 061-0000-66000-00 Galesburg Builders Supply, Inc PORTLAND CEMENT CONCRETE, CL PP2 MIX - DELIVERED 136.25 000009183107/13/2021 061-0000-66000-00 Core & Main Meter couplings 1,075.5507/13/2021 061-0000-66000-00 Galesburg Builders Supply, Inc PORTLAND CEMENT CONCRETE, CL PP2 MIX - DELIVERED 163.50 000009183107/13/2021 061-0000-66000-00 Water Products Co. of IL., Inc.10" macro two bolt couplings 745.6007/13/2021 061-0000-66700-00 Core & Main 510M S/POINT M2 WIRED RADIO UNIT 13,095.00 000009190207/13/2021 061-0000-66700-00 Core & Main FL7502-GB SENSUS HANDHELD DEVICE, ANDROID OPERATING SYSTEM 12,000.00 000009190207/13/2021 061-0000-66700-00 Core & Main MISC. METER NEEDS FOR 20021 FOR WATER DIVISION 1,280.00 000009190307/13/2021 061-0000-68500-00 Brenntag Mid-South, Inc Drum return -2,250.00 000009182407/13/2021 061-0000-68500-00 Brenntag Mid-South, Inc 2021 Liquid Chlorine for Water Division as per bid. This is a bl 3,903.50 000009182407/13/2021 061-0000-68700-00 Core & Main LARGE METER ORDERS PURCHASED FOR BUSINESS USE 1,255.00 000009190407/13/2021 96,585.53Subtotal for Divison: 0000 Subtotal for Fund 061 96,585.53 067-0000-20101-00 HANNAH YOUNG Refund Check 053039-000, 1392 N FARNHAM ST 5.1006/30/2021 067-0000-20101-00 DORIAN KIRKPATRICK Refund Check 062992-001, 2357 LILLIE LN 3.6406/30/2021 067-0000-51000-00 SpringbrookSoftware LLC 06/21 Pay Pad Fees 66.6307/13/2021 75.37Subtotal for Divison: 0000 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 14 Account Number Vendor AmountDescription PO No Date Subtotal for Fund 067 75.37 078-0000-56535-00 Cottage Rehab and Sports Medicine Work comp dos 6/8/21 #AA15360763 192.4807/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/12/21 #20521Z69129 191.2507/13/2021 078-0000-56535-00 Cottage Rehab and Sports Medicine Work comp dos 6/9/21 #AA15360763 192.4807/13/2021 078-0000-56535-00 Midwest Orthopaedic Center Work comp dos 6/21/21 #420073-010012 77.4407/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/07/21 #20369Z69129 141.2607/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/24/21 #20866Z69129 140.1307/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/19/21 #20733Z69129 186.3307/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/21/21 #20863Z69129 186.3307/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/03/21 #20174Z69129 191.2507/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/12/21 #20521Z69129 141.2607/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/14/21 #20519Z69129 191.2507/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 4/30/21 #20163Z69129 192.4307/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/05/21 #20297Z69129 191.2507/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/26/21 #20980Z69129 186.3807/13/2021 078-0000-56535-00 Universal Therapy Work comp dos 05/10/21 #20418Z69129 191.2507/13/2021 078-0000-56597-00 Glasnovich Auto Body Body repair #20 4,036.0907/13/2021 6,628.86Subtotal for Divison: 0000 Subtotal for Fund 078 6,628.86 091-0000-20102-00 Galesburg Sanitary Dist.07/21 Sanitary District Fees less 04/21 Credit Card Fees -1,869.4007/13/2021 091-0000-20102-00 Galesburg Sanitary Dist.07/21 Sanitary District Fees less 3% collection fee -10,532.9707/13/2021 091-0000-20102-00 Galesburg Sanitary Dist.07/21 Sanitary District Fees less 05/21 Postage for Liens -0.1607/13/2021 091-0000-20102-00 Galesburg Sanitary Dist.07/21 Sanitary District Fees less 05/21 Lien Fees -51.5807/13/2021 091-0000-22003-00 Galesburg Sanitary Dist.07/21 Sanitary District Fees 351,098.8607/13/2021 338,644.75Subtotal for Divison: 0000 Subtotal for Fund 091 338,644.75 Report Total: 874,893.46 AP-Transactions by Account (07/13/2021 - 3:27 PM)Page 15 Check Date Check #Vendor Name Description Account #Amount 7/1/2021 0 Wells Fargo GO2013A Interest 047-0000-87300 23,040.00 7/1/2021 0 Wells Fargo GO2011C Interest 046-0000-87300 19,463.75 7/1/2021 0 Knox County Collector Property Tax - SE Sec 19 lyg N RR & lyg S I-74 (Ex pt for Rd)024-0000-84500 10,644.16 7/1/2021 0 Knox County Collector Property Tax - Western Addn Lot 2 Blk 1 024-0000-84500 104.84 7/1/2021 0 Knox County Collector Property Tax - Inness Farm Leasehold 020-0000-84500 470.76 7/1/2021 0 Knox County Collector Property Tax - RP 1957 RESD LT3 BLK4 LT1 & PT LT2 BLK5 HARDINGS 024-0000-84500 143.40 7/1/2021 0 Knox County Collector Property Tax - RP 1957 RESD LT3 BLK4 LT1 & PT LT2 BLK5 HARDINGS 024-0000-84500 106.82 7/1/2021 0 Knox County Collector Property Tax - 13.38 Acs lyg S & W of I-74 S1/2 SW 024-0000-84500 829.58 7/1/2021 0 Knox County Collector Property Tax - Lot 1 SW Sec 19 024-0000-84500 960.74 7/1/2021 0 Knox County Collector Property Tax - Western Addn Lot 3 Blk 1 024-0000-84500 104.84 7/1/2021 0 Knox County Collector Property Tax - PT Lot 6 Commissioners Sub Lyg SWI-74 E 1/2 NE Se 024-0000-84500 191.80 7/1/2021 0 Knox County Collector Property Tax - Inness Farm Leasehold 020-0000-84500 22,510.58 7/1/2021 0 Knox County Collector Property Tax - VL W 2246-2284 Promenade Court 024-0000-84500 199.78 7/1/2021 0 Knox County Collector Property Tax - NW Sec 19 lyg SW I-74 & lyg NE RR (Ex Maple Ln Su 024-0000-84500 7,073.50 7/1/2021 0 Knox County Collector Property Tax - W 1/2 NE Sec 19 lyg I-74 & pt lot 5 commissioners 024-0000-84500 1,942.30 7/1/2021 0 Knox County Collector Property Tax - SW Sec 20 lyg S I-74 & NW FA400 & N RR(Ex Beg SW 024-0000-84500 1,699.84 7/1/2021 0 Euclid Beverage Liquor for Golf Concessions 019-1920-64125 360.55 7/1/2021 0 G & M Distributors Liquor for Golf Concessions 019-1920-64125 120.00 7/1/2021 0 G & M Distributors Liquor for Golf Concessions 019-1920-64125 471.25 7/1/2021 4034 J W Summy Contracting Corp.DCEO RLF at 760 W South Street 013-0000-83100 3,425.00 7/1/2021 20062 J W Summy Contracting Corp.DCEO HELP Pilot at 760 W South Street 013-0000-83100 9,215.00 7/1/2021 20062 J W Summy Contracting Corp.CO #1 DCEO HELP Pilot Newl Garage Window & Trim Work 013-0000-83100 250.00 7/1/2021 95030 Knox County Recorders Office File 38 weed/trash/demo liens 001-0160-51300 300.00 7/2/2021 0 Chuck Humes Officiate 3 games Sball - 6/29 019-1940-51400 90.00 7/2/2021 0 Dan Burgland Officiate 3 games Sball - 6/29 019-1940-51400 90.00 7/8/2021 0 Chuck Humes Umpire 3 games of Sball - 7/6 019-1940-51400 90.00 7/8/2021 0 Dan Burgland Umpire 3 games of Sball - 7/6 019-1940-51400 90.00 7/8/2021 0 Quadient Leasing USA, Inc Postage for machine 061-0000-10702 500.00 7/8/2021 0 National Stearman Foundation, Inc Site Construction Stearman Building 024-0000-83100 8,687.31 7/8/2021 0 National Stearman Foundation, Inc Site Construction Stearman Building 024-0000-83100 21,312.69 7/8/2021 0 National Stearman Foundation, Inc Site Engineering Stearman Building 024-0000-83100 4,358.16 7/8/2021 0 National Stearman Foundation, Inc CO#1 Additional Funds added to City Contribution for Stearman Bu 024-0000-83100 7,166.69 7/8/2021 0 Cardconnect 06/21 Credit Card Fees 019-1905-51000 602.34 7/8/2021 0 Euclid Beverage Liquor for golf concessions 019-1920-64125 188.45 7/8/2021 0 Farmers & Mechanics Bank 06/21 F&M Bank Trust Fees 019-1905-51000 4.34 7/8/2021 0 G & M Distributors Liquor for golf concessions 019-1920-64125 136.90 7/8/2021 0 IMRF 06/21 IMRF Contributions 001-0000-20311 131,830.02 7/8/2021 0 Bluefin Payment Systems 06/21 UB Webpayment Credit Card 061-0000-51000 0.95 7/8/2021 0 Bluefin Payment Systems 06/21 UB Webpayment Credit Card 067-0000-51000 0.48 7/8/2021 0 Bluefin Payment Systems 06/21 UB Webpayment Credit Card 067-0000-51000 1,476.80 7/8/2021 0 Bluefin Payment Systems 06/21 UB Webpayment Credit Card 061-0000-51000 2,953.59 7/8/2021 0 Merchant Transact 06/21 UB Webpayment Fees 061-0000-51000 1.71 7/8/2021 0 Merchant Transact 06/21 UB Webpayment Fees 067-0000-51000 0.86 7/8/2021 0 Statham & Long Real Estate Trust Account Purchase of VL NE Corner of Mulberry & Seminary 055-0000-76000 33,717.53 7/8/2021 0 Vantiv Integrated Payment Solutions 06/21 Park & Rec Credit Card Fees 019-1905-51000 102.17 7/8/2021 0 Vantiv Integrated Payment Solutions 06/21 Park & Rec Credit Card Fees 019-1950-51000 54.95 7/8/2021 0 Wells Fargo Merchant Services 06/21 Credit Card Fees 001-0205-51000 1.56 Advance Checks and ACH Payments as of 7/13/2021 7/8/2021 0 Wells Fargo Merchant Services 06/21 Credit Card Fees 061-0000-51000 3.13 7/8/2021 0 Wells Fargo Merchant Services 06/21 Credit Card Fees 019-1925-51000 508.27 7/8/2021 0 Wells Fargo Merchant Services 06/21 Credit Card Fees 001-0115-51000 1.30 7/8/2021 0 Wells Fargo Merchant Services 06/21 Credit Card Fees 067-0000-51000 1.56 7/8/2021 0 Wells Fargo Merchant Services 06/21 Credit Card Fees 001-0410-51000 0.91 7/8/2021 0 Wells Fargo Merchant Services 06/21 Credit Card Fees 001-0306-51000 0.92 7/8/2021 0 Wells Fargo Merchant Services 06/21 Credit Card Fees 019-1920-51000 2,096.96 7/9/2021 0 G & M Distributors Liquor for golf concessions 019-1920-64125 553.70 7/9/2021 0 G & M Distributors Liquor for golf concessions 019-1920-64125 4.75 Grand Total 320,257.49$ CITY OF GALESBURG COUNCIL LETTER JULY 6, 2021 AGENDA ITEM:Ordinance establishing hours for the cemeteries and scattering garden. SUMMARY RECOMMENDATION:The Director of Parks and Recreation and the City Clerk recommend approval. BACKGROUND:The Police Department has recently encountered vehicles in the cemetery late at night and have asked that hours be added to the code so that if needed, it can be enforced or a violation written. Individuals can visit the cemetery outside these hours with prior consent of the Parks & Recreation Director or by a City Manager designee. BUDGET IMPACT: None SUPPORTING DOCUMENTS: 1. Ordinance ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: KRB Page 1 of 1 21-1014 ORDINANCE NO. _______________________ BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, ILLINOIS,AS FOLLOWS: SECTION 1:Chapter 92 of the Galesburg Municipal Code be, and the same hereby is amended, by adding thereto the following: 92.04 CEMETERY HOURS No person shall frequent, remain or be present in Linwood Cemetery, East Linwood Cemetery, or the Scattering Gardens, between sunset of each evening and sunrise of the following morning, except by prior consent of the Director of Parks and Recreation or a City Manager designee. SECTION 2: All ordinances, or parts of ordinances, in conflict with this ordinance are, to the extent of such conflict, hereby repealed. SECTION 3:This ordinance shall be in full force and effect from and after its passage, approval and publication as provided by law. Approved this day of ____________________, 20_____, by roll call vote as follows: Roll Call #:_____ Ayes: ________________________________________________________________________ _____________________________________________________________________________ Nays: ________________________________________________________________________ _____________________________________________________________________________ Absent: ______________________________________________________________________ _____________________________________________________________________________ Peter Schwartzman, Mayor ATTEST: Kelli R. Bennewitz, City Clerk Prepared by: SG Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 19, 2021 AGENDA ITEM: Resolution authorizing the transfer of funds from the Tax Increment Financing (TIF) District II fund to the TIF IV fund. SUMMARY RECOMMENDATION: The City Manager and Interim Director of Community Development recommend approval of the resolution. BACKGROUND: The Illinois Tax Increment Allocation Redevelopment Act (the TIF Act), provides specifically for the transfer of funds from one TIF district to another. Section 4 (q) of the Act [65 ILCS 5/11-74.4-4(q)] provides that a municipality may “utilize revenues…received under this Act from one redevelopment project area for eligible costs in another redevelopment project area that is: (i) contiguous to the redevelopment project area from which the revenues are received…” Attached for the City Council’s consideration is a resolution authorizing the transfer of $32,467.50 from TIF II to TIF IV. These funds will be utilized to provide redeveloper assistance to Mr. Robert I.I. Bondi for eligible renovation costs on a building at 311 East Main Street. BUDGET IMPACT: The resolution provides for the transfer of $32,467.50 between the TIF II Fund and the TIF IV Fund. Sufficient funds are available in the TIF II Fund. SUPPORTING DOCUMENTS: 1. Resolution 21-2020 RESOLUTION NO. _________________ RESOLUTION STATING THE CITY’S INTENT TO TRANSFER FUNDS FROM THE SPECIAL TAX ALLOCATION FUND FOR TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA NO. II TO THE SPECIAL TAX ALLOCATION FUND FOR TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA NO. IV WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act, 65 5/11-74.4-1 et. seq. hereinafter referred to as the “Act”, the City of Galesburg (the “City”) did on June 2, 2008 adopt Ordinances 08-3224, 08-3225 and 08-3226 approving the Tax Increment Redevelopment Plan and Project for a specific area legally described therein as a Redevelopment Project Area (commonly referred to as “TIF Area IV”), designated the TIF Area IV boundary and adopted tax increment financing for TIF Area IV; and WHEREAS, pursuant to the Act, the City did on December 29, 1986 adopt Ordinances 86-1134, 86-1135, 86-1136 and 86-1137 approving the Tax Increment Redevelopment Plan and Project for a specific area legally described therein as a Redevelopment Project Area (commonly referred to as “TIF Area II”), designated the TIF Area II boundary and adopted tax increment financing for TIF Area II and on April 5, 2010 adopted Ordinance 10-3285 to amend the Redevelopment Plan and Project and extend the end date; and WHEREAS, pursuant to the Act, the City established Special Tax Allocation Funds for both TIF Area II and TIF Area IV into which revenue from each respective TIF Area has been deposited and from which expenditures will be made for eligible TIF redevelopment project costs; and WHEREAS, the redevelopment objectives for both TIF Area II and TIF Area IV include, among others, public works or improvements, including improvement of streets and other public improvements; and WHEREAS, the funds available in the Special Tax Allocation Fund for TIF Area IV are at present insufficient to make certain expenditures deemed necessary, but are expected to grow in future years as TIF Area IV attracts private investment; and WHEREAS, the Act authorizes the City to utilize tax increment finance revenues received from one redevelopment project area for eligible costs in another, contiguous, redevelopment project area; and WHEREAS, funds are at present available in the Special Tax Allocation Fund for TIF Area II to cover the costs associated with redevelopment within the TIF Area IV; and WHEREAS, the City Council of the City of Galesburg hereby finds and determines that TIF Area II and TIF Area IV are contiguous and that it is in the best interest of the City that funds be transferred from TIF Area II to TIF Area IV, for eligible expenses of TIF Area IV; and WHEREAS, the City of Galesburg will be providing $32,467.50 in TIF Area IV dollars for eligible renovation costs to be made at the Bondi Building (311 East Main Street) located in the TIF IV Redevelopment Project Area. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the City of Galesburg, Illinois, as follows: 1. In furtherance of the objectives of the redevelopment plans identified above, the City Administration is authorized to transfer funds from the Special Tax Allocation Fund for TIF Area II to the Special Tax Allocation Fund for TIF Area IV for purposes of implementing an eligible TIF redevelopment project within the TIF Area IV, specifically, funds for eligible renovation costs to be made at the Bondi Building (311 E Main Street) located in the TIF IV Redevelopment Project Area. 2. All expenditure of funds from the Special Tax Allocation Fund for TIF Area IV shall be in accordance with the Act. 3. That this resolution shall take effect immediately from and after its passage. Approved this day of , 20 __ , by a roll call vote as follows: Roll Call #: Ayes: _________________________________________________________________________ Nays: _________________________________________________________________________ Absent: _______________________________________________________________________ ______________________________ Peter Schwartzman, Mayor ATTEST: ____________________________ Kelli R. Bennewitz, City Clerk ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: WC Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 19, 2021 AGENDA ITEM: Resolution authorizing the transfer of funds from the Tax Increment Financing (TIF) District I fund to the TIF IV fund for the cost for Ameren to relocate existing poles and lighting to make room for ornamental street lighting on both sides of Main Street between Cedar Street and Academy Street. SUMMARY RECOMMENDATION: The City Manager, Director of Public Works, and Interim Director of Community Development recommend approval of the resolution. BACKGROUND: The Illinois Tax Increment Allocation Redevelopment Act (the TIF Act), provides specifically for the transfer of funds from one TIF district to another. Section 4 (q) of the Act [65 ILCS 5/11-74.4-4(q)] provides that a municipality may “utilize revenues…received under this Act from one redevelopment project area for eligible costs in another redevelopment project area that is: (i) contiguous to the redevelopment project area from which the revenues are received…” There are not sufficient funds in the TIF IV fund for this work. Attached for the City Council’s consideration is a resolution authorizing the transfer of $52,764.89 from TIF I to TIF IV for the proposed work. BUDGET IMPACT: The resolution provides for the transfer of $52,764.89 from the TIF I fund to the TIF IV fund in order to pay the Ameren invoices totaling $52,764.89. Sufficient funds are available in the TIF I Fund. SUPPORTING DOCUMENTS: 1. Resolution 21-2021 RESOLUTION NO. _________________ RESOLUTION STATING THE CITY’S INTENT TO TRANSFER FUNDS FROM THE SPECIAL TAX ALLOCATION FUND FOR TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA NO. I TO THE SPECIAL TAX ALLOCATION FUND FOR TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA NO. IV WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act, 65 5/11-74.4-1 et. seq. hereinafter referred to as the “Act”, the City of Galesburg (the “City”) did on June 2, 2008 adopt Ordinances 08-3224, 08-3225 and 08-3226 approving the Tax Increment Redevelopment Plan and Project for a specific area legally described therein as a Redevelopment Project Area (commonly referred to as “TIF Area IV”), designated the TIF Area IV boundary and adopted tax increment financing for TIF Area IV; and WHEREAS, pursuant to the Act, the City did on April 1, 1985 adopt Ordinances 85- 1002, 85-1003 and 85-1004 approving the Tax Increment Redevelopment Plan and Project for a specific area legally described therein as a Redevelopment Project Area (commonly referred to as “TIF Area I”), designated the TIF Area I boundary and adopted tax increment financing for TIF Area I and on July 1, 1985 adopted Ordinance 85-1023 reaffirming adoption and on December 29, 1986 adopted Ordinances 86-1138, 86-1139, 86-1140 and 86-1141 to amend the Redevelopment Plan and Project Area and on November 20, 2000 adopted ordinance 2000-1984 to amend the Redevelopment Plan and Project and change the estimated date of completion and on April 5, 2010 approved Ordinance 10-3284 to amend the Redevelopment Plan and Project and extend the end date; and WHEREAS, pursuant to the Act, the City established Special Tax Allocation Funds for both TIF Area I and TIF Area IV into which revenue from each respective TIF Area has been deposited and from which expenditures will be made for eligible TIF redevelopment project costs; and WHEREAS, the redevelopment objectives for both TIF Area I and TIF Area IV include, among others, public works or improvements, including improvement of streets and other public improvements; and WHEREAS, the funds available in the Special Tax Allocation Fund for TIF Area IV are at present insufficient to make certain expenditures deemed necessary, but are expected to grow in future years as TIF Area IV attracts private investment; and WHEREAS, the Act authorizes the City to utilize tax increment finance revenues received from one redevelopment project area for eligible costs in another, contiguous, redevelopment project area; and WHEREAS, funds are at present available in the Special Tax Allocation Fund for TIF Area I to cover the costs associated with redevelopment within the TIF Area IV; and WHEREAS, the City Council of the City of Galesburg hereby finds and determines that TIF Area I and TIF Area IV are contiguous and that it is in the best interest of the City that funds be transferred from TIF Area I to TIF Area IV, for eligible expenses of TIF Area IV; and WHEREAS, the City of Galesburg will be providing $52,764.89 in TIF Area IV dollars for the relocation of Ameren utility poles from approximately the intersection of Cedar Street and West Main Street to the intersection of Academy Street and West Main Street, located in the TIF IV Redevelopment Project Area. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the City of Galesburg, Illinois, as follows: 1. In furtherance of the objectives of the redevelopment plans identified above, the City Administration is authorized to transfer funds from the Special Tax Allocation Fund for TIF Area I to the Special Tax Allocation Fund for TIF Area IV for purposes of implementing an eligible TIF redevelopment project within the TIF Area IV, specifically, funds for the relocation of Ameren utility poles from approximately the intersection of Cedar Street and West Main Street to the intersection of Academy Street and West Main Street, located in the TIF IV Redevelopment Project Area.in an amount of $52,764.89. 2. All expenditure of funds from the Special Tax Allocation Fund for TIF Area IV shall be in accordance with the Act. 3. That this resolution shall take effect immediately from and after its passage. Approved this day of , 20 __ , by a roll call vote as follows: Roll Call #: Ayes: _________________________________________________________________________ Nays: _________________________________________________________________________ Absent: _______________________________________________________________________ ______________________________ Peter Schwartzman, Mayor ATTEST: ____________________________ Kelli R. Bennewitz, City Clerk Page 1 of 10 TRAFFIC ADVISORY COMMITTEE JULY 2021 REPORT MISSION: To provide technical recommendations for policy decisions by the City Council in order to create safe, efficient, serviceable streets for residents, visitors, and public safety operation. 21-14> Request to address speeding concerns on Lincoln Street between Main Street and North Street (Ward 2, Ald. Dennis) • A resident requested that speeding concerns be addressed on Lincoln Street between Main Street and North Street. This request has been reviewed by TAC in the past. Most recently, TAC discussed this item in May 2020. At that time, it was recommended to install a speed limit sign for southbound traffic coming from North Street as there was not one previously. Current speed data in being collected but is not yet available. • TAC has also reviewed multiple requests in the past regarding the safety of the curve on Lincoln Street just south of North Street. The same resident has requested in the past that measures be taken to make the curve safer, stating that crashes are common due to speeding vehicles being unable to negotiate the curve. Crash reports for the past 5 years were reviewed. • A total of 8 crashes have occurred due to a failure to negotiate the curve. 7 of those crashes were northbound vehicles and one was a southbound vehicle. There were 3 occurrences where a northbound vehicle struck a southbound vehicle. The remaining 5 crashes were instances of vehicles running off the road and striking signage, a utility pole, or the embankment. Chevrons and delineators on the curb were installed in the past to help drivers see the curve. • One possible option to deter speeding as well as slow vehicles down in advance of the curve would be to install speed cushions. Typical speed cushions are 12 feet long and 7 feet wide and 3 inches in height. Rubber speed cushions that can be removed and reinstalled are available for purchase. Speed cushions typically slow vehicles down to 15-20 mph and are installed with gaps so that larger emergency vehicles can pass through without slowing while normal passenger cannot. A quote was obtained for purchasing speed humps. For materials only, the speed cushions would cost $11,800. There would be additional considerations such as the labor to install and remove them each year. • Speed data was obtained over a one-week period and the results are shown below. The 85th percentile is 34 mph. This speed is commonly used to set speed limits and is the speed that drivers perceive to be safe based on the roadway conditions. The 10 mph pace is the 10 mph range that contains the most vehicles. In this case, 70 percent of vehicles were traveling between 25 and 34 mph. DATE DIRECTION % <= 25 MPH % <= 30 MPH % <= 35 MPH % <= 40 MPH 85% TILE SPEED 10 MPH PACE 10/3 to 10/14 Southbound 23 % 67 % 94 % 99 % 33 mph 25-34 10/3 to 10/14 Northbound 20 % 58 % 90 % 98 % 34 mph 25-34 10/3 to 10/14 Combined 21 % 62 % 92 % 99 % 34 mph 25-34 • The committee discussed that the prime concern were the crashes at the curve and there was a need to slow down northbound traffic in advance of the curve. Two options were discussed, speed humps and installation of a radar feedback sign. Ultimately, the committee decided on a recommendation of installing radar feed back signs. They have been installed in other locations and have been shown to work to slow down traffic after analyzing before and after speed data. They could also be left in year- Page 2 of 10 round and cost less than the speed humps. The main concerns of the speed humps included expense, having to remove and reinstall each year, and noise from traffic breaking and hitting them in the residential area. The estimated total cost for one radar feedback sign for northbound traffic is $3,800. Recommendation: Install a permanent radar feedback sign 21-18> Request to address speeding concerns on S. Soangetaha Rd. (Ward 2, Ald. Dennis) • A request was made by Mayor Schwartzman following complaints from residents to provide suggestions to slow down traffic on S. Soangetaha Rd. near Bridle Creek Apartments. • Currently, the speed limit is 30 mph from Main Street to Springer Road and 25 mph from Springer Road to Knox St. The 25 mph speed limit was put in place due to the curves in the roadway south of Springer Road. • Similar requests have been made to address speeding at this location in 2004, 2007, 2009, and 2016. In the past, the response has been to increase police enforcement. A speed limit sign was also moved closer to the location of the speeding concerns in 2007. Speed data was collected in 2015 and in 2016 and did not show a significant speeding issue. • The committee recommends increasing police enforcement and also putting out the radar feedback trailer temporarily. Page 3 of 10 LOCATION MAP Recommendation: No change. Increase police enforcement and set out the radar feedback trailer. Page 4 of 10 21-19> Request to address safety concerns on Losey St. in front of ON Custer Park (Ward 2, Ald. Dennis) • A resident requested that safety concerns for pedestrians be addressed on Losey St. in front of ON Custer Park. The resident stated that the surrounding neighborhoods use the park often and vehicles travel fast through this section on Losey. Also, when there are baseball games or other events, vehicles park on the street and it is dangerous getting in and out of a vehicle and is difficult to see pedestrians among the parked cars. • The speed limit on Losey St. is 30 mph. There are yellow 20 mph signs along with “playground” signs posted on either side of the park. However, a review of the speed limit ordinances shows that the speed limit was not officially changed to 20 mph in this area. • It was discussed that parking in general is not sufficient at the park, especially for the playground and wading pool. Visitors will often park along the lane and block it or park on Losey Street. It was also discussed that during busy times such as when baseball games are occurring, it is difficult to pull out onto Losey Street when vehicles are parked on the north side of the street. • The committee agreed that restricting parking on the north side of Losey in front of the park would allow pedestrians to be seen better and make it safer to exit the park onto Losey. However, it was discussed that the lack of off-street parking for the playground and wading pool would need to be addressed if the parking were to be restricted. Off-street parking could be added by widening park road in front of the playground creating a designated parking lane. It is recommended to further explore the option of adding the parking lane by determining the work that would need to be done and what the cost would be. Page 5 of 10 LOCATION MAP Recommendation: Pursue widening the park road to create more off-street parking near the playground 21-20> Request to remove the parking restriction on Pearl St. near South St. (Ward 3, Ald. Hillery) • A request was made by a property owner to remove a parking restriction on the west side of S. Pearl St. just south of South St. The property owner stated that they own the duplex on the corner and the parking restriction requires one of the tenants to park on South St. instead of being able to park on Pearl. • Parking is currently restricted on the west side of Pearl St. from South St. 40 feet to the south. The ordinance and reasoning for the parking restriction that was put in place was not found in our records. • If the parking restriction were to be removed, one vehicle would have room to park in front of the residence and maintain enough distance from the intersection at South St. • The committee recommends removing the parking restriction. Other side streets with similar traffic volumes to do not have parking restrictions near the intersection. Pearl St. is also wide enough near the intersection for two-way traffic if a car is parked in front of the residence. Page 6 of 10 LOCATION MAP Recommendation: Remove the parking restriction on Pearl St. Page 7 of 10 21-21> Request to address speeding concerns on Duffield Ave. between Main St. and North St. (Ward 2, Ald. Dennis) • A request was made by a resident to address speeding concerns on Duffield Ave. between Main St. and North St. The resident stated that motorists drive too fast heading south on Duffield coming from North St. and headed to Main St. • Duffield Ave. is a residential brick street that is 32 feet wide with a 30 mph speed limit. • The committee recommends installing the temporary speed trailer on this block in the future. LOCATION MAP Recommendation: No change 21-22> Request to restrict parking on the north side of Berrien St. between Pearl St. and Day St. (Ward 3, Ald. Hillery) • A request was made by a resident to restrict parking on the north side of Berrien St. between Pearl St. and Day St. The resident stated that their neighbor across the street parks vehicles in front of her house making it difficult for her to back out of her driveway and causing her trash to not be picked up. • Currently, parking is allowed on both sides of Berrien St. on this block. Parking is restricted on the north side of Berrien in the block to the west. Berrien St. is a 28 foot wide residential street. • The committee discussed getting input from the residents to determine a consensus on whether parking Page 8 of 10 should be restricted on the north side of the street. A survey will be sent to the residents and the results reviewed at the next meeting in August. LOCATION MAP Recommendation: Survey the residents regarding the potential parking restriction 21-23> Request to revise the Labor Day parade route Page 9 of 10 • A request was received from the Galesburg Labor Day Parade Committee requesting that the parade route be changed to start on Chambers St. instead of Seminary St. • Prior to 2016, the parade route started on Chambers St. In 2016, the parade route was discussed by TAC and changed to start on Seminary St. The following is an excerpt from the 2016 TAC report: • A request was received from the Police Chief and Fire Chief to revise the route of the Galesburg Memorial Day Parade. • Construction of the Bickerdyke Bridge included the closure of North Seminary Street at the BNSF tracks north of North Street resulting in a significant decrease in traffic on Seminary Street from North Street to Main Street as traffic was rerouted to Kellogg Street at the south end of the overpass. It is felt that the low volume of traffic on Seminary Street, North Street, Water Street, and Ferris Street results in an area that would be better than the current area on Chambers Street for the staging and line-up of the parade participants. This proposed staging area is also adjacent to City and church owned parking lots where participants could be dropped off and staged in a more orderly manner. • Local businesses stated that since they would typically be closed on days of parades they were not concerned with the change in routes. The Lutheran Church was in approval of the revised route and volunteered their parking lot for the staging and drop-off areas. The high school stated concerns with changing the end of the route from Cherry Street to around the square and down Broad Street. TAC is in approval of the change in the beginning of the route and leaving the ending as currently done. The map will be revised to show this and participants notified. • The Labor Day Parade Committee has requested the route be changed back to the original route to start on Chambers St. The reason cited was congestion on Seminary, Ferris, and Water St. was creating traffic backups on Kellogg Street from the parade. Also, this start location was making it difficult for the businesses in the area to operate while the parade was going on. • The committee agreed with the request to change the route back to not impact the businesses and avoid traffic congestion in the downtown area. It was noted that other parades use this route and the start location should be consistent between all parades in the area. Members of the committees for the other downtown parades will be consulted about the change in the parade route. Recommendation: Approve the change in the parade route Page 10 of 10 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by SG Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 19, 2021 AGENDA ITEM: Facade grant for 311 East Main Street. SUMMARY RECOMMENDATION: The Facade Advisory Committee met on July 6, 2021 to review this request for a facade grant. The Committee recommended approval of the facade assistance in an amount not to exceed $64,935, or 50% of the actual final project costs, whichever is less (Members Bullis, Holloway, Martin and Scott). BACKROUND: Robert Bondi, the owner of the property at 311 East Main Street (Bondi Building Corp.), has submitted an application for a facade grant. The scope of work is detailed in the attached application. The estimated total façade project cost is $129,870 and they are eligible to request up to 50% of the project costs through the façade grant program. This project is located inside of the Special Service Area as well, so any incentive provided will be 50% from the City (through the Tax Increment Financing District IV fund) and 50% from the Galesburg Downtown Council. For example, if a façade grant of $64,935 is approved then $32,467.50 would come from the city (TIF IV) and $32,467.50 would come from the Galesburg Downtown Council. The remaining funds to complete the project will be paid by the owner. If approved, the owner anticipates beginning work in August with an estimated completion by October 1, 2021. BUDGET IMPACT: As a separate approval on the Council agenda, $32,467.50 will be transferred from Tax Increment Financing District #2 to the Tax Increment Financing District #4 Fund. SUPPORTING DOCUMENTS: 1.General location aerial map 2.Façade Grant Application 3.Façade Agreement 21-4067 150 NKelloggStNKelloggStSKelloggSt150 NSeminaryStSSeminarySt150 S SEMINARY STN SEMINARY STE MAINST S KELLOGG STN KELLOGG ST£¤150 9910483025 CITY OF GALESBURG ATTN: CITY CLERK 9910487004KNOX COUNTY TRUSTEE9910487007 KNOX COUNTY TRUSTEE 991048701699104870179910487024 311 E MAIN ST BONDI BUILDING CORP 9915228009238 E MAIN STMARTIN MICHAEL L1302 FRANK STGALESBURG IL 6140100009915228011250 E MAIN STGPP HOLDINGS LLC810 LYMAN STGALESBURG IL 614019915228021 CITY OF GALESBURG ATTN: CITY CLERK 9915229008346 E MAIN STPLUNK DAVID M9915229028CITY OF GALESBURG ATTN: CITY CLERKSources: Esri, HERE, Garmin, FAO, NOAA, USGS, ©OpenStreetMap contributors, and the GIS User Community June 18, 2021 / Cadastral City of Galesburg 311 E Main St 60 0 60 120 18030 Feet 311 E Main St Community Development Department CITY OF GALESBURG Operating Under Council-Manager Government Since 1957 Page 1 of 20 FACADE GRANT AGREEMENT WITH ROBERT I.I. BONDI AS PRESIDENT OF THE BONDI BUILDING CORPORATION Redevelopment of Lots 1, 2, 3, and 4 of Mathew’s Subdivision of Original lots 6 and 7 in block 15 of the City of Galesburg, Knox County, Illinois according to plat Dated June 14, 1901 and recorded in volume 4 on page 6 of the plat of records in the Office of the Recorder of Deeds of said Knox County; Also a strip of land 18 feet Wide and 132 feet long being part of original lots 6 and 7 in said block 15 and known and designated as private alley on said plat, together with building and improvements situated therein. COMMONLY KNOWN AS: 311 East Main Street, Galesburg, IL 61401 PROPERTY IDENTIFICATION NUMBER: 99-10-487-024 Submitted by: Return to: Kelli Bennewitz Kelli Bennewitz City Clerk City Clerk City of Galesburg City of Galesburg Page 2 of 20 THIS AGREEMENT, entered into this________day of ___________ , 2021, by and between the City of Galesburg, an Illinois municipal corporation, hereinafter referred to as “City”, whose address is 55 West Tompkins Street, P.O. Box 1387, Galesburg, Illinois, 61401 and the Bondi Building Corporation (hereinafter referred to as “Recipient”), whose address is 311 E Main St. Suite 207, Galesburg, Illinois, 61401. WHEREAS, the City has established the Downtown Facade Redevelopment Program pursuant to resolution 16-07 (hereinafter referred to as “Program”). The purpose of the Program is to encourage architecturally appropriate improvements to commercial facades readily visible to the public, with the goal of promoting the attraction and retention of business operations and enhance the interest in visiting the downtown area, which will improve the overall economic condition of the City; and WHEREAS, the objective of the Program is to provide a financing mechanism which will make business improvements in the Downtown Area, which is a geographically defined area shown in the Program, financially feasible or economically more viable than it would be without the benefit of this Program, and that such inducements will help maintain and expand business activity and attract new business investments which might otherwise not occur in the Downtown Area; and WHEREAS, the Galesburg Downtown Council (hereinafter referred to as the “GDC”), has agreed to allow the City to carry out their Facade Improvement Grant Program (hereinafter referred to as the “GDC Program”), to approve GDC Program funds for Recipients who request and are eligible for participation in the GDC Program; and WHEREAS, the Recipient has submitted the required documentation to request funds from the Program and GDC Program, and the Facade Advisory Committee and the City have determined that the Project to be undertaken by the Recipient fits the established criteria, NOW, THEREFORE, in consideration of the foregoing and the mutual agreement and herein, the City and the Recipient agree as follows: SECTION 1: DEFINITIONS A. Definition of Terms. Certain terms used in this Agreement shall have the following meanings unless their content or use clearly indicates otherwise. “Agreement” means this document for development pursuant to the Downtown Facade Redevelopment Program. “City” means the City of Galesburg, Illinois. Page 3 of 20 “Construction Documents” means written, graphic and pictorial documents, prepared or assembled by an Illinois licensed design professional where applicable, for describing the design, location and physical characteristics of the Project necessary for obtaining construction permits. “Estimated cost of the project” means the cost of the Project as estimated as of the date of this Agreement and as reflected on Exhibit C attached hereto and made a part hereof. “Event of Default” means those occurrences, actions or lack of action which shall be construed to be a breach of failure to perform pursuant to the terms of this Agreement as set forth in Section 12 of this Agreement. “Facade” means the exterior of a building visible from a public street or alley. “Final Project Cost Analysis” means the statement of actual cost and expenses of the Project submitted by the Redeveloper to the City in certified form after completion of the Project. “GDC” means the Galesburg Downtown Council. “GDC Program” means the Facade Improvement Grant Program offered by the Galesburg Downtown Council. “Grant” means the monies provided by the City and GDC to the Recipient to reimburse costs specified in Section 7 herein. “Program” means the Downtown Facade Redevelopment Grant Program pursuant to resolution 16-07. “Project” means the redevelopment of the Facade as described in Exhibit B. “Property” means the parcel(s) in which the Project is taking place, as described in Exhibit A. B. Construction of Words. The words “hereof”, “herein”, “hereunder” and other words of similar import refer to this Agreement as a whole. Unless otherwise specified, references to Articles, Sections and other subdivisions of this Agreement are to the designated Articles, Sections and other subdivisions of this Agreement as originally executed. The headings of this Agreement are for convenience of reference only and shall not define or limit the provisions hereof. C. Non-Limitation of City’s Remedies. Nothing contained herein shall in any way limit the remedies of the City pursuant to other sections of this Agreement and pursuant to law and equity in the Event of Default. SECTION 2: COVENANTS AND RESTRICTIONS A. Non-Discrimination. The Recipient agrees for itself and its successors and assigns, and every successor in interest to the Property, or any part thereof, that the Recipient and such successors and assigns, shall not Page 4 of 20 discriminate in violation of all applicable Federal, State or Local laws or regulations upon the basis of race, color, religion, sex, age or national origin in the sale, lease or rental, or in the use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof. B. Duration of Covenants. It is intended and agreed that the covenants provided in Section 2 shall remain effective without any time limitation, provided, that such agreements and covenants shall be binding on the Recipient itself, each successor in interest to the Property, and in every part thereof, and each party in possession or occupancy, respectfully, only for such period as such successor or party shall have title to an interest in, or possession or occupancy of the Property. C. Guarantees. The Recipient agrees for itself, its successors and assigns and every successor in interest to the Property or any part thereof, that the Recipient and such assigns shall guarantee the Project shall begin within 180 days from the date this Agreement is executed and shall use its best efforts to cause said improvements to be in accordance with the Construction Documents approved by the City. A Project description is attached hereto as Exhibit B and incorporated herein by this reference. D. Covenants Running with the Land. It is intended and agreed that the covenants referred to above shall be covenants running with the land and that they shall in any event be binding to the fullest extent permitted by law and equity, for the benefit and in favor of and enforceable by the City, its successors and assigns, and the City, the State of Illinois, and the United States of America with regard to Section 2A of this Agreement, and against the Recipient, its successors and assigns and every successor in interest to the Property or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. E. Binding for the Benefit of the City. It is also intended and agreed that the foregoing agreements and covenants running with the land shall in any event and without regard to technical classification or designation legal or otherwise itself be to the fullest extent permitted by law and equity binding for the benefit of the City and enforceable by the City and the State of Illinois and the United States against the Recipient and its successors, assigns to or of the Property or any part thereof or any interest therein. F. This Agreement shall be governed by the State of Illinois and the parties agree that Knox County is and will be the appropriate venue for the hearing of any dispute relating to this Agreement. SECTION 3: CITY AND GDC OBLIGATION A. The City and GDC shall provide to Recipient reimbursable grant not to exceed the total amount of $64,935.00 or fifty percent of the Estimated Cost of the Project specified in Exhibit C, or fifty percent of the actual Final Project Costs, whichever is less for the Project as described in Exhibit B (hereinafter both grants referred to as the “Grant”). Said Grant will be available to the Recipient for the expenses as Page 5 of 20 outlined in Exhibit C. Payment to the Recipient shall be in the form of a reimbursement of expenses paid by the Recipient. Grant reimbursements, to the maximum extent possible, will be made by the City and GDC within 30 business days of the date the Certification for Reimbursement of Facade Grant was received by the City and GDC. The facade incentive is a shared program between the City and GDC, therefore the total grant paid out will be split evenly between the City and the GDC. SECTION 4: RECIPIENT’S OBLIGATION AND RIGHTS A. Guarantees. In consideration of the Grant to be provided, the Recipient guarantees the construction of the project. Specifically, Recipient guarantees the activities as outlined in Exhibit B shall be completed at the estimated cost of $129,870.00, as outlined in Exhibit C. B. Submission of Construction Documents. Prior to commencement of construction the Recipient shall submit to the City for its approval, which approval shall not be unreasonably withheld, Construction Documents, prepared by an Illinois licensed design professional where applicable, that are of sufficient clarity to indicate the location, nature and extent of the work proposed as outlined in EXHIBIT B. C. Conformance to Construction Documents. All work with respect to the Project to be construed or provided by the Recipient on the Property shall be in substantial conformity with the Construction Documents and Project description as outlined in EXHIBIT B. D. Conformance to Federal, State and Local Requirements. All work with respect to the Project shall conform to all applicable Federal, State and Local laws, regulations and ordinances including, but not limited to construction codes, life safety code and Illinois Accessibility Code. E. Changes in Construction Documents. If the Recipient desires to make any substantial change in the Construction Documents which significantly affects the appearance, function, or structural integrity of the Project, whether prior to, or subsequent to the funding of the Grant, the Recipient shall submit the proposed change to the City for its approval. F. Improvements, Commencement and Completion Requirements. 1. Commencements. The Recipient agrees for itself, its successors and assigns that it shall begin within 180 days from the date this Agreement is executed and diligently prosecute to completion the redevelopment of the Property through the construction of the Project thereon pursuant to the approved Construction Documents and in accordance with approved changes. 2. Compliance. The Recipient agrees for itself, its successors and assigns that the construction of the Project shall be in compliance with applicable Federal, State and Local laws, regulations and ordinances. All construction permits are secured and all associated fees are paid prior to the onset of work and all completed work shall pass appropriate inspections of applicable reviewing agency. Page 6 of 20 3. Remedies. In addition to all the available remedies provided by this Agreement, the City shall have all available remedies pursuant to law and equity to remedy defects and recover damages in the event of any violation of subparagraphs F1 and F2 immediately preceding. 4. Lien Waivers. All contracts payable from Grant funds shall provide that all contractors and subcontractors furnish contractor's affidavits in the form provided by state statute and that waivers of lien be required for all payments made. G. Financing Authorization and Commitment. Prior to any disbursement of Grant funds by the City, the Recipient shall submit to the City evidence that the Recipient has the appropriate authorization to proceed, and has sufficient funds available or financing in place to cover the costs associated with the private share of the project. H. Progress Reports. Until construction of the Project has been completed, the Recipient shall make progress reports to the City when milestone dates are achieved, or upon special requests of the City in such detail as may be reasonably requested by the City. I. The Recipient shall agree to work with and cooperate with the City to inform the public about the Project. J. Maintenance and Alteration. 1. The Recipient, its successors and assigns, shall maintain the façade improvements for a period of five (5) years from the date of the final Grant reimbursement. 2. The Recipient, its successors and assigns, shall not alter, modify or remove facade improvements for a period of five (5) years from the date of the final Grant reimbursement without written approval from the City. SECTION 5: REPRESENTATIONS OF THE RECIPIENT The Recipient represents, warrants and agrees as the basis for the undertakings on its part herein contained that: A. Organizational and Authorization. The Recipient is: Robert I.I. Bondi Bondi Building Corp 311 East Main St, Suite 207 Galesburg, IL 61401 B. Use of Proceeds. All of the proceeds from the Grant funds will be used for the facade renovation costs of the Project as provided for herein. Page 7 of 20 C. Location of the Project. The Project will be located on the Property, as described in Exhibit A. D. Estimated Costs. The Estimated Cost of the Project is set forth in Exhibit C attached hereto. E. Changes in Acquisition or Construction of Project. The Project consists and will consist of the property described in Exhibit A attached hereto and no changes shall be made in the construction of the Project which will have the effect of impairing the effective use or character of the Project as contemplated by this Agreement. F. Conformance with Requirements and Regulation. The Recipient has examined and is familiar with all the covenants, conditions, restrictions, building regulations and zoning ordinances and land use regulations including those contained herein affecting the Property and the Project, and covenants that the Construction Documents and the construction of the improvements in accordance with the Construction Documents do and will in all respects conform to and comply therewith. SECTION 6: ADDITIONAL COVENANTS OF THE RECIPIENT A. Indemnification Covenants. The Recipient agrees for itself, its successors and assigns, to indemnify and save the City and its officers and employees harmless against all claims by or on behalf of any person, firm or corporation arising from the conduct or management of, or from any work or thing done on, the Project while the Property remains in existence and against and from all claims arising from (i) any condition of the Project (ii) any breach or default on the part of the Recipient or its successors and assigns in the performance of any of its obligations under this Agreement (iii) any act of negligence of the Recipient or of any of its agents, contractors, servants, employees or licensees, (iv) any act of negligence of any assignee or lessee of the Recipient, or of any agents, contractors, servants, employees or licensees of any assignee or lessee of the Recipient, or (v) any performance by the City of any act required under this Agreement or required by the Recipient or its successors and assigns other than negligent or willful misconduct of the City. The Recipient agrees to indemnify and save the City harmless from and against all costs and expenses incurred in or in connection with any such claim arising as foresaid or in connection with any action or proceeding brought thereon. In case any such claim is made or action brought based upon any such claim in respect of which indemnity may be sought against the Recipient, upon receipt of notice in writing from the City setting forth the particulars of such claim or action, the Recipient shall assume the defense thereof including the employment of counsel and the payment of all costs and expenses. The City shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of Page 8 of 20 such counsel shall be at the expense of the City unless the employment of such counsel has been specifically authorized by the Recipient. B. Insurance. The Recipient shall agree to keep and maintain its property insured for its full insurable value against loss or damage by fire, theft, explosion, sprinklers and all other hazards and risks ordinarily insured against by other owners or users of such properties in similar business. All insurance policies shall contain an endorsement that the insurance company shall provide the City at least 30 days prior written notice before any such policy shall be altered or canceled. C. Maintenance and Repair. The Recipient agrees that it will maintain and repair the Project in accordance with the requirements of this Agreement. SECTION 7: GRANT ASSISTANCE A. Grant Assistance to the Recipient. The City and the GDC agree, upon the terms and conditions in this Agreement, to make available an amount not to exceed $64,935 or fifty percent of the Estimated Cost of the Project specified in Exhibit C, or fifty percent of the actual Final Project Costs, whichever is less. B. Permitted Expenditures. No Grant funds may be disbursed from the City to Recipient unless they are for the purpose of paying the costs which are permitted by the Program as it may be amended from time to time. C. Disbursement from Grant Fund. At the request of and on behalf of the Recipient, the City, pursuant to the terms and conditions of this Agreement shall through disbursements from the appropriate Tax Increment Financing Fund, to the extent of funds available, reimburse to the Recipient for the costs incurred for the Project as set forth on Exhibit C attached hereto. D. Modification of Expenditures. The items set forth on Exhibit C may be modified by increasing or decreasing the cost of a particular item by adding or deleting items from the list provided. However, the total amount to be funded shall not exceed $129,870.00 (One Hundred Twenty Nine Thousand Eight Hundred Seventy and no Cents) and further, provided that any such modification shall conform to the requirements of subsection 7B and the requirements of this Agreement. All requests for modification shall be in writing to the City. If such modification conforms to the requirements of this Agreement, the City shall approve the proposed change and process the request for reimbursement. E. Conditions Precedent to Disbursement. Prior to the initial reimbursement payment, unless waived by the City in writing, Recipient will furnish to the City the following, all to be satisfactory in both form and substance to the City, which shall be conditions precedent to the City's disbursement of Grant funds. Any item, the production of which has not been waived by the City, shall be furnished by the Recipient to the City as soon as reasonably available. Page 9 of 20 1. Necessary and appropriate construction permits; 2. Organization documents and filings for the Recipient and all resolutions necessary to effect the obligations of the Recipient pursuant to this Agreement; 3. Satisfactory proof that policies of insurance of all types and coverages required under the term of this Agreement have been obtained and are in force; 4. Contracts and subcontracts covering the construction of the Project; 5. Labor, material, performance and payment bond or bonds issued by a Company acceptable to the City for any contractor, subcontractor or subcontractors, with the City named as dual obligee; 6. Internal Revenue Service and Illinois taxpayer identification numbers for Recipient; 7. Evidence satisfactory to the City that Recipient holds fee simple title to the Property subject only to the encumbrances of the First Mortgage or holds valid options to acquire fee simple title to the Property subject to the above noted encumbrances; 8. Evidence of funds available for completion of the Project; 9. Requests for Reimbursements. Concurrently with the request for any Grant disbursement, Recipient shall furnish to the City, separately with respect to each disbursement request, an Application and Certificate for Payment duly signed with all blanks appropriately filled in setting forth such details concerning the costs contained therein as the City shall require. Such request shall include a detailed breakdown of any Final Project Costs associated with the project showing the amount expensed to date and the amounts then due and unpaid, and receipted invoices and/or releases or waivers of lien forms approved by the City from each material dealer, contractor and subcontractor who has done work or has furnished materials for construction of the Project, including but without limitation those covered by each such an Application and Certificate for Payment of Façade Grant. Such request shall also include properly executed Certified Transcript of Payroll by all contractors and subcontractors indicating compliance with the Illinois Prevailing Wage Act, including but without limitation, those pay periods covered by each such an Application and Certificate for Payment of Facade Grant. F. Time for Payment of Requisitions. If the City shall so require, thirty (30) days shall intervene between the date of receipt by City of an Application and Certificate for Payment of Façade Grant and the date upon which the City shall be obligated to effect such reimbursement. SECTION 8: CONSTRUCTION OF THE IMPROVEMENTS A. Commencement and Completion. Recipient shall cause construction of the Project to be commenced and to be prosecuted with due diligence and in good faith, and without delay. Recipient shall cause Project to be constructed in a good and workmanlike manner in accordance with the Construction Documents Page 10 of 20 and in all respects in compliance with all applicable laws, rules, permits, requirements and regulations of any government agency or authorities having or exercising jurisdiction over the Property or the Project and will not cause, permit or allow any substantial deviation from the Construction Documents without prior written consent of the City. B. Contract Prohibitions. Unless otherwise previously agreed by the City in writing, all contracts let by Recipient or Recipient's contractor in connection with construction of the Project shall contain a prohibition against any material change in the Construction Documents involving a structural, square footage, design change or other substantial change without the City's prior written consent being had thereto. SECTION 9: LIABILITY INSURANCE Prior to any Grant disbursement, Recipient or Recipient’s contractor shall procure and deliver to the City at Recipient's or such contractor's cost and expense, and shall maintain in full force and effect until each and every obligation of Recipient contained herein has been fully paid, or performed, a policy or policies of comprehensive liability insurance and during any period of construction contractor's liability insurance with liability coverage under the comprehensive liability insurance to be not less than $1,000,000 (One Million Dollars) each occurrence and $2,000,000 (Two Million Dollars) total. All such policies to be in such form and issued by such companies as shall have been approved by the City to protect the City and Recipient against any liability incidental to the use of or resulting from any accident occurring in or about the Project or the construction and improvements thereof. Each such policy shall contain an affirmative statement by the issuer thereunder to give written notice to the City at least 30 (thirty) days prior to any cancellation or amendment of its policy. SECTION 10: RIGHTS OF INSPECTION The City or its designee shall have the right at any time and from time to time to enter upon the Property for the purposes of inspection and if the City in its judgment, determines that any work and materials are not in conformity with the Construction Documents, as the same were theretofore approved in writing by the City, or with any applicable laws, regulations, permits, requirements or rules of any governmental authority having or exercising jurisdiction thereover or not otherwise in conformity with sound building practice, the City shall have the right to stop the work and to order replacement of correction of any such work or materials regardless of whether or not such work or materials have theretofore been incorporated into the Project. Inspection by the City of the Property or the Project shall be for the sole purpose of protecting the security for the Grant assistance and shall not be construed as a representation by the City that there has been compliance with the Construction Documents or that the Project will be or are free of faulty materials or workmanship, or a waiver of any rights the City or any other party may have against Recipient or any other party for non-compliance with the Construction Documents. Page 11 of 20 SECTION 11: PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER A. Representation as to Purpose. The Recipient represents and agrees that its redevelopment of the Property, and its other undertakings pursuant to this Agreement, are, and will be used, for the redevelopment of the Property only. B. Prohibition Against Transfer of Property and Assignment of Agreement. The Recipient represents and agrees for itself and its successors and assigns that: 1. Prohibitions. Except only by way of security for a First Mortgage and only for the purpose of obtaining financing necessary to enable the Recipient or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to making the Project under this Agreement, the Recipient (except as so authorized) has not made or created, and it will not, prior to receipt of the certificate of occupancy from the City, make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to the Agreement or the Property, or any part thereof or any interest therein, or any contract or agreement to do any of the same, except for utility easements, without prior written approval of the City. 2. Conditions for Approval. The City shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval that: a. Any proposed transferee shall have the qualifications and financial responsibility, as determined by the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Recipient (or, in the event the transfer is of or related to part of the Property, such obligations to the extent that they relate to such part.) b. Any proposed transferee, by instrument in writing satisfactory to the City and in a form recordable among the real property records, shall for Itself and its successors and assigns, and expressly for the benefit of the City, have expressly assumed all of the obligations of the Recipient under this Agreement and agreed to be subject to all the conditions and restrictions to which the Recipient is subject (or, in the event the transfer is of or relates to part of the Property, such obligations, conditions and restrictions to the extent that they relate to such part); Provided, that the fact that any transferee of, or any other successor in interest whatsoever, to the Property or any part thereof, shall, whatever the reason, not have assumed such obligations or so agreed, shall not (unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the City) relieve or except such transferee or successor of or from such obligations, conditions, or restrictions, or deprive or limit the City of or with respect to any rights or remedies or controls with respect to the Property or the Page 12 of 20 construction of the Project; it being the intent of this, together with other provisions of this Agreement, that (to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property of any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate legally or practically, to deprive or limit the City of, or with respect to, any rights or remedies or controls provided in or resulting to the Property and the construction of the Project that the City would have had, had there been no such transfer or change. 3. The Recipient and its transferee shall comply with such other conditions as the City may find desirable in order to achieve and safeguard the purposes of the Real Property Tax Increment. Provided, that in the absence of specific written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve the Recipient, or any other party in interest bound in any way by the Agreement or otherwise with respect to the construction of the Project, from any of its obligations with respect thereto. SECTION 12: EVENTS OF DEFAULT AND REMEDIES A. Events of Default. The following shall be Events of Default with respect to this Agreement: 1. If any material representation made by the Recipient in this Agreement, or in any certificate, notice, demand or request made by the Recipient, in writing and delivered to the City pursuant to or in connection with any of said documents shall prove to be untrue or incorrect in any material respect as of the date made; or 2. Default in the performance or breach of any covenant contained in this Agreement concerning the covenant of Recipient with regard to its existence and ownership of the Property; or 3. Default in the performance or breach of any other covenant, warranty or obligation of the Recipient in this Agreement and continuance of such default or breach for a period of 30 (thirty) days after Recipient has actual knowledge thereof; or 4. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of the Recipient in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or state bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Recipient for any substantial part of its property, or ordering the winding-up or liquidation of its affairs and the continuance of any such decree or order unstayed and in effect for a period of 60 (sixty) consecutive days; or 5. The commencement by the Recipient of a voluntary case under the Federal bankruptcy laws, as now or Page 13 of 20 hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, or the consent by any such entity to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Recipient or of any substantial part of such entity's property, or the making by any such entity of any assignment for the benefit of creditors or the failure of the Recipient generally to pay such entity's debts as such debts become due or the taking of action by the Recipient in furtherance of any of the foregoing. B. Remedies on Default 1. In the event of any default in or breach of this Agreement, or any of its terms or conditions, by the Recipient or any successors or assigns, the Recipient shall repay to the City a portion of the Grant amount received according to the following formula: 60 months – (months elapsed from date Grant funds received) X Grant funds received = Repayment Amount 60 months Upon receipt of the repaid Grant amount, the City will process and forward to the GDC their respective share of the repaid Grant, when applicable. 2. Except as otherwise provided in this Agreement, in the event of any default in or breach of this Agreement, or any of its terms or conditions, by either party hereto or any successors to such party, such party or successor, upon written notice from the other, shall take immediate action to cure or remedy such default or breach, and, in any event, within 60 (sixty) days after receipt of such notice. In case such action is not taken, or not diligently pursued, or the default or breach shall not be cured or remedied within a reasonable time, the aggrieved party may institute such proceedings as may be necessary or desirable in its opinion to cure or remedy such default or breach, including but not limited to, proceedings to compel specific performance by the party in default or breach of its obligations. 3. In case the City shall have proceeded to enforce its rights under this Agreement and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely to the City, then and in every such case the Recipient and the City shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Recipient and the City shall continue as though no such proceedings had been taken. C. Agreement to Pay Attorney’s Fees and Expenses. In the event the Recipient should default under any of the provisions of this Agreement and the City should employ attorneys or incur other expenses for the collection of the payments due under this Agreement or the enforcement of performance or observance of any obligation Page 14 of 20 or agreement on the part of the Recipient herein contained the Recipient agrees that it will on demand therefore pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. In the event the City should default under any of the provisions of this Agreement and the Recipient should employ attorneys or incur other expenses for the collection of the payments due under this Agreement or the enforcement of performance or observance of any obligation or agreement on the part of the Recipient herein contained the City agrees that it will, on demand therefore, pay to the Recipient the reasonable fees of such attorneys and such other expenses so incurred by the Recipient. SECTION 13: OTHER RIGHTS AND REMEDIES OF CITY AND RECIPIENT A. No Waiver by Delay. Any delay by the City or the Recipient in instituting or prosecuting any actions or proceedings or otherwise asserting its rights shall not serve to waive or to deprive it of or limit such rights in any way (it being the intent of this provision that the City or Recipient should not be constrained so as to avoid the risk of being deprived of or limited in the exercise of the remedy provided in this Section because of concepts of waiver, lathes or otherwise) to exercise such remedy at a time when it may still hope to otherwise resolve the problems created by default involved; nor shall any waiver in fact made by the City or Recipient with respect to any specific default by the Recipient or the City under this Section be considered or treated as a waiver of the rights of the City or the Recipient with respect to any other defaults by the Recipient, or the City under this Section or with respect to any defaults under any Section in this Agreement or with respect to the particular default, except to the extent specifically waived in writing by the City or the Recipient. B. Rights and Remedies Cumulative. The rights and remedies of the parties to this Agreement (or their successors in interest) whether provided by law or by this Agreement, shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the time or different time, of any such remedies for the same default or breach by the other party. No waiver made by either such party with respect to the performance, nor the manner of time thereof, or any obligation of the other party or any condition as to its own obligation under this Agreement shall be considered a waiver of any rights of the party making the waiver with respect to the particular obligation of the other party or condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the party making the waiver or any other obligations of the other party. SECTION 14: DELAY IN PERFORMANCE For the purposes of any of the provisions of this Agreement except regard to payment of real property taxes or guarantees as provided herein, neither the City, nor the Recipient, as the case may be, nor any successor Page 15 of 20 in interest, shall be considered in breach of, or default in, its obligations with respect to the preparation of the Property for redevelopment, or the beginning and completion of construction of the Project, or progress in respect thereto, in the event of enforced delay in the performance of such obligations due to unforeseeable cause beyond its control and without its fault or negligence, including, but not restricted to acts of God, acts of the public enemy, acts of federal, state or local government, acts of the other party, fires, floods, epidemics, quarantine restrictions, strikes, embargoes, acts of nature, unusually severe weather or delays of subcontractors due to such causes; it being the purpose and intent of this provision that in the event of the occurrence of any such enforced delay, the time or times for performance of the obligations of the City with respect to the preparation of the Property for the redevelopment Project or of the Recipient with respect to construction of the Project as the case may be, shall be extended for the period of the enforced delay. Provided, that the party seeking the benefit of the provisions of this Section, shall, within 10 (ten) days after the beginning of any such enforced delay, have first notified the other party thereof in writing, of the cause or causes thereof, and requested an extension of the period of enforced delay. Such extensions of schedule shall be agreed to in writing by the parties hereto. SECTION 15: EQUAL EMPLOYMENT OPPORTUNITY The Recipient, for itself and its successors and assigns, agrees that during the construction of the Project provided for in this Agreement that the following will apply: A. Non-Discrimination. The Recipient will not discriminate against any employee or applicant for employment on the basis of race, color, religion, sex, or national origin. The Recipient will take affirmative action to insure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include but not be limited to, the following: employment, upgrading, demotion, transfer, recruitment, recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Recipient agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this non-discrimination clause. B. Advertising. The Recipient will, in all solicitations or advertisements for employees placed by or on behalf of the Recipient, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. C. Non-Compliance. In the event of the Recipient’s non-compliance with the non-discrimination clauses of this Section, this Agreement may be canceled, terminated, or suspended in whole or in part. D. Mandatory Inclusions of Provisions. The Recipient will include the provisions of Paragraphs "A" through "C" of this Section in every contract or purchase order, and will require the inclusions of these provisions in every Page 16 of 20 subcontract entered into by any of its contractors, unless exempted by rules, regulations, so that such provisions will be binding upon each such contractor, subcontractor, or vendor as the case may be. SECTION 16: PREVAILING WAGE RATES The Recipient for itself and its successors and assigns: A. Understands that any construction work, that is funded with the Grant assistance provided by the City, is subject to the provisions of the Prevailing Wage Act of the State of Illinois (820 ILCS 130/1 et seq.). Said Act provides for the payment of the prevailing rate of wage to all laborers, workers and mechanics engaged on the work. B. Agrees to require contractors and their subcontractors to conform with said laws for any work funded with the Grant assistance. C. Agrees to indemnify the City for any and all violations of said laws and any rules and regulations now or hereinafter issued pursuant to said laws. D. Understands the Act requires the following: 1. Workers shall be paid general prevailing wage rate for regular hours, legal holidays and overtime work. 2. Contractor shall post the prevailing wage rates at the construction site. 3. Contractor shall make and keep for a period of not less than three years certified payrolls for the project. 4. Contractors and subcontractors shall submit Certified Transcript of Payroll to the Recipient, who shall then have their Architect forward said certified payrolls to the City indicating compliance with the Illinois Prevailing Wage Act, with each submittal of an Application and Certificate for Payment of Façade Grant. 5. Recipient shall verify with the Illinois Department of Labor prior to start of construction that all contractors and subcontractors who will work on the project have not been placed on the State's list of contractors who have disregarded the state labor standards. SECTION 17: TITLES OF ARTICLES AND SECTIONS Any titles of the several parts, Articles and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. SECTION 18: CONFLICT OF INTEREST No member, officer, or employee of the City or its designees or agents and no member of the governing body of the City during his or her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract or the proceeds thereof, with respect to which this Agreement shall apply. Page 17 of 20 SECTION 19: NOTICES All notices, requests, demands and other communications to be given to any party hereunder shall be in writing and shall be deemed to have been duly given when personally delivered or deposited in the United States mail, certified or registered mail, return receipt requested, postage prepaid, addressed to the parties at the following addresses (or at such other address as shall be given in like manner by any party to the other): City of Galesburg: Recipient: City of Galesburg Planning Division 55 West Tompkins Street Galesburg, IL. 61401 Robert I.I. Bondi Bondi Building Corp 311 E Main St, Suite 207 Galesburg, IL 61401 SECTION 20: COUNTERPARTS If the Agreement is executed in two or more counterparts, each shall constitute one and the same instrument and each shall be recognized as an original instrument. IN WITNESS WHEREOF, the parties hereto have executed this Agreement and caused their respective seals to be affixed and attested thereto as of the date first written above in this Agreement. City of Galesburg A municipal corporation Recipient: Central Congregational Church By: By: Peter Schwartzman, Mayor Robert I.I. Bondi Title: President, Bondi Building Corp Attest: Attest: Kelli R. Bennewitz, City Clerk Page 18 of 20 EXHIBIT A PROPERTY DESCRIPTION Redevelopment of Lots 1, 2, 3, and 4 of Mathew’s Subdivision of Original lots 6 and 7 in block 15 of the City of Galesburg, Knox County, Illinois according to plat Dated June 14, 1901 and recorded in volume 4 on page 6 of the plat of records in the Office of the Recorder of Deeds of said Knox County; Also a strip of land 18 feet Wide and 132 feet long being part of original lots 6 and 7 in said block 15 and known and designated as private alley on said plat, together with building and improvements situated therein. COMMONLY KNOWN AS: 311 East Main Street, Galesburg, IL 61401 PROPERTY IDENTIFICATION NUMBER: 99-10-487-024 Page 19 of 20 EXHIBIT B PROJECT DESCRIPTION Scope: Exterior masonry repairs in various areas of the building. Work will include: Area No 1 West side • Remove existing outer wythe in area approximately 35 feet by 8 feet below coping stone and dispose of material off site. Lay back new masonry tied to existing. Area No 2 East side • Remove existing outer wythe in area approximately 18 feet by 8 feet below coping stone and dispose of material off site. Lay back new masonry tied to existing. Masonry Restoration in various areas • Misc tuckpointing about 675 square feet • Recaulking of coping joints about 150 square feet • Shelf angle repairs; clean, paint lintel about 155 square feet • Individual brick replacement about 100 Page 20 of 20 EXHIBIT C COSTS OF PROJECT Description of Work Estimated value Area No 1 west side $45,142 Area No 2 east side $27,712 East (at parking lot) $8,546 North $7,678 West $20,914 South $19,878 Total $129,870.00 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: WEC Page 1 of 1 CITY OF GALESBURG COUNCIL LETTER JULY 19, 2021 AGENDA ITEM: Ameren Main Street Lighting invoices for relocating poles and removing existing lighting to make room for ornamental street lighting on both sides of Main Street between Cedar Street and Academy Street. SUMMARY RECOMMENDATION: The City Manager and Director of Public Works recommend payment of the invoices from Ameren for relocating their poles and removing the existing lighting in order to make room for proposed ornamental street lighting on both sides of Main Street between Cedar Street and Academy Street in the amount of $52,764.89. BACKGROUND: In 2001, the City received an IDOT grant for installing decorative street lighting, landscaping, and sidewalk on Main Street from Chambers Street to Cedar Street. In 2011, the City completed construction of the Moffitt Overpass which also included similar decorative lighting. This left a two block gap in the decorative lighting on Main Street between Cedar Street and Academy Street. With the proposed new library being located on Main Street between West Street and Academy Street, the Library Board has asked if the City would be willing to install the same decorative lighting on West Main Street in the block in front of the new library (West St. to Academy Street). Installing the ornamental street lighting will tie these two blocks between the Overpass and the square together and make it more cohesive as part of the downtown. It will also make the lighting levels consistent throughout this area. In April 2021, the City Council approved hiring IMEG consultants to prepare bid documents for this work. It is estimated that the decorative lighting construction project will cost $400,000 to construct. It is proposed to use TIF funds to pay for this work. Once the project is bid out, the bids will be brought back to the City Council for approval. In order to make room for the new poles and remove conflicting light poles, Ameren will be required to relocate their existing poles and wires off of Main Street behind the buildings. After Ameren completes their work, there will not be any overhead lines on Main Street, they will be running behind the buildings instead. Prior to the City agreeing to install the new lighting, the library had requested the poles along the south side of Main Street between West Street and Academy Street be removed. Ameren has already billed the library $8,858.28 and the remainder of the cost would be $43,906.61 which has been invoiced to the city. It is proposed for the city to reimburse the library the $8,858.28 for the work in their scope because it would have been necessary for the city to install the new decorative lighting. BUDGET IMPACT: There are not sufficient TIF Funds in TIF IV for this work, therefore it is proposed to transfer funds from TIF I to TIF IV for this work. The construction of the project will also require a transfer of funds from TIF I and TIF IV. SUPPORTING DOCUMENTS: 1. Invoices from Ameren 21-4068 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by CSG Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 19, 2021 AGENDA ITEM: External Agency Funding requests for Fiscal Year 2021. SUMMARY RECOMMENDATION: Staff recommends that the Council consider external agency funding requests and fund applicants at the amounts listed in the attached summary chart, for a total expenditure of $84,111. BACKGROUND: Each year, external agencies request funding to support various programs and functions provided to the community. Funding is allotted for assisting external agencies in the Economic Development Fund. During this application period, 19 organizations requested $143,961 of funding. Three organizations previously received $31,250 in external agency funding outside of this funding cycle. The organizations and projects for which external agency applications are received vary greatly, and include community events, as well as services for members of the community. As external agency requests for funding have trended upward each year and budgetary constraints limit the City’s ability to continually fund at higher levels, it is recommended to fund applicants at the amounts listed in the attached summary chart. The City budgeted $105,000 in external agency funding for 2021. The attached funding recommendations, allocate a total of $84,111 in funding, and $31,250 was previously granted to community organizations outside of the normal funding cycle, for a total expenditure of $115,361. Utilizing property redevelopment funds for two awards focused on home repair, would enable the fulfillment of the recommended contributions, while staying within budget. While the majority of requests were able to be funded or partially funded, due to budget constraints, not all requests are recommended for funding. Funding awards will be provided to awarded applicants on a reimbursement basis, contingent upon the event or services being held or provided as outlined in the grant application. BUDGET IMPACT: There are sufficient funds in the economic development budget, 024- 83100, to cover $73,111 in recommended funding, and sufficient funds in the property redevelopment fund, 023-83100, to cover $11,000 in in recommended funding. SUPPORTING DOCUMENTS: 1. 2021 External Agency Funding Requests and Recommendations Summary Chart 2.Overview of Requests 3. External Agency Agreement for Use of Funds 21-4069 Organization 2018 Award 2019 Award 2020 Award 2021 Awarded 2021 Funding Request Proposed Bridgeway Inc.$0 $0 $0 $5,000 2,500$ Christmas In Action Galesburg $1,000 $1,000 $1,000 $1,000 1,000$ Cremation Assistance Foundation $0 $1,500 $0 $1,500 500$ Galesburg Community Chorus $4,000 $4,000 $2,000 $2,961 2,961$ Galesburg Heritage Days Living History Association, Inc.$7,500 $8,000 $0 $10,000 8,000$ Galesburg Lions Club - Fireworks $11,000 $0 $15,000 X -$ Galesburg Symphony Society / Knox-Galesburg Symphony $8,250 $8,750 $4,500 $10,000 8,750$ Galesburg Youth Athletic Club $5,000 $5,000 $5,000 $7,500 5,000$ Habitat for Humanity of Knox County, IL $7,500 $10,000 10,000$ KCCDD $4,000 $4,000 $2,000 $3,000 2,500$ Knox County Fair Board Association $7,000 $7,500 $0 $12,000 7,000$ Knox County Scenic Drive $1,500 $1,500 $1,500 $1,500 1,500$ Knox County Soil and Water Conservation District $0 $4,000 -$ National Stearman Fly-In, NFP, Inc.$8,250 $8,750 $0 $25,000 8,750$ New Limited Rods Of Western Illinois $2,500 $3,000 $0 $3,000 3,000$ Nova Singers $3,250 $3,900 $2,000 $4,000 3,900$ Railroad Days $10,750 $11,250 $0 $11,250 X -$ Salvation Army $5,000 $5,000 $5,000 $5,000 $15,000 5,000$ The Great Balloon Race $5,750 $6,250 $0 $12,000 6,250$ United Way of Knox County (Unmet Needs)$5,000 $5,000 $5,500 5,000$ VNA Community Services $5,000 $5,000 $11,000 2,500$ Total $81,250 $100,400 $33,000 $31,250 $143,961 84,111$ 73,111$ 11,000$ 84,111$ *2020 awards were reimbursement based. Cells are highlighted if the organization was able to complete their project and received the funding.Total Recommended CITY OF GALESBURG 2021 External Agency Funding Requests and Recommendations Economic Development Fund Property Redevelopment Fund Overview of 2021 Requests for External Agency Funding Organization: Bridgeway, Inc. Funding Requested: $5,000 Category: Event Basic overview of project: Discover Wellness Summit for up to 300 individuals, at not cost to the attendees. One day event with two keynote speakers, with a goal of provide community education and encourage overall wellness. All-day conference to promote wellness and decrease stigma regarding mental health and substance abuse. Includes lunch, promotional items, keynote speakers, wellness fair, and breakout workshops. Organization: Christmas in Action Funding Requested: $1,000 Category: Service Basic overview of project: Provide exterior repairs to help elderly and/or disabled homeowners stay in their homes. Organization: Cremation Assistance Foundation Funding Requested: $1,500 Category: Service Basic overview of project: Provide burial services (headstone, urn, plot, obituary, grave opening and closing fee) for those who are unable to afford the cost of a funeral/burial. Organization: Galesburg Community Chorus Funding Requested: $2,961 Category: Event Basic overview of project: Presents choral concerts. Tickets to attend are $15 for adults, $12 for seniors, and students are free. Organization: Galesburg Heritage Days Funding Requested: $10,000 Category: Event Basic overview of project: Living history festival, which includes battle reenactments, demonstrations, competitions, entertainment and merchants. Free to all visitors. Organization: Galesburg Symphony Society/Knox-Galesburg Symphony Funding Requested: $10,000 Category: Event Basic overview of project: Symphony performances, tickets start at $20 – 25 per adult, students $5 – 10. Group and individual music lessons. Organization: Galesburg Youth Athletic Club Funding Requested: $5,000 Category: Service Basic overview of project: Provide athletic diversion program from drugs, gangs, and violence. Youth are taught fundamentals of Olympic boxing from volunteer coaches. Teaches responsibility, self-control, as well as provides mentoring and homework assistance. Each participant is required to register with USA Boxing for an annual fee of $65 (hardship scholarships available). All other activities offered through the club are free. Also provides a Rock Steady class for Parkinson’s patients for $25/month. Organization: Habitat for Humanity Funding Requested: $10,000 Category: Service Basic overview of project: Purchase and renovate an existing home. Organization: KCCDD, Inc. Gordan Behrents Senior Center Funding Requested: $3,000 Category: Service Basic overview of project: Provides adult day services for up to 50 individuals. The cost of day services is $71.50 per 5-hour day, not including transportation, which is $10.29 per trip, for a maximum cost of $92.08 per day. Organization: Knox County Fair Board Association Funding Requested: $12,000 Category: Event Basic overview of project: Events such as the Knox County Fair, Knox County Queen Pageant, Cattlemen Shows, etc. Organization: Knox County Scenic Drive Funding Requested: $1,500 Category: Event Basic overview of project: Vendors and activities Organization: Knox County Soil and Water Conservation Funding Requested: $4,000 Category: Service Basic overview of project: Sealing abandoned wells. Benefits landowner and increases safety. Organization: National Stearman Fly-in Funding Requested: $25,000 Category: Event Basic overview of project: Fly-in for Stearman pilots and enthusiasts Organization: New Limited Rods Funding Requested: $3,000 Category: Event Basic overview of project: Host two car cruise-ins. Events are free to the public to attend. Organization: Nova Singers Funding Requested: $4,000 Category: Event Basic overview of project: Presents choral concerts, with tickets prices of $17 - $20 and students free. Organization: Salvation Army Funding Requested: $15,000 Category: Service Basic overview of project: Provide emergency housing assistance – security deposit, rent, utility assistance – specifically targeted to those facing irregular or emergency events. Organization: The Great Balloon Race Funding Requested: $12,000 Category: Event Basic overview of project: Event that brings hot balloons to Lake Storey Park for people to view, as well provides vendors, children’s activities, etc. Free to attend. Organization: United Way of Knox County - Unmet Needs Funding Requested: $5,500 Category: Service Basic overview of project: Unmet needs committee, made up of charities who provide services. Organizations serving on the committee come to the table, hear the case of the individual in need of assistance and then decide if that need aligns with their mission. Organization: VNA Community Services Funding Requested: $11,000 Category: Service Basic overview of project: Home delivered meals provided to seniors in Knox County at no cost (free will donation). Serves 220 residents. For Reference – Prior Awards in 2021 Organization: Galesburg Lions Club Funding Provided: $15,000 Category or request: Event Basic overview of project: Big Bang Boom Fireworks Display Organization: Galesburg Railroad Days Funding Provided: $11,250 Category: Event Basic overview of project: Promote Galesburg’s railroad heritage through the event; including exhibits, events, tours, street dance, carnival, etc. Organization: Salvation Army Funding Provided: $5,000 Category: Service Basic overview of project: Provide emergency housing assistance – security deposit, rent, utility assistance – specifically targeted to those facing irregular or emergency events. EXTERNAL AGENCY AGREEMENT CONCERNING USE OF CITY OF GALESBURG GRANT FUNDS THIS AGREEMENT is entered into on __________________, by and between the City of Galesburg, an Illinois municipal corporation, hereinafter “City”, and ____________________________________, hereinafter the “Grantee”. I. PURPOSE OF FUNDING. City hereby agrees to provide funding to the Grantee for use solely for the purposes outlined in its funding request previously submitted by the Grantee, which is incorporated by reference into this agreement. Grantee hereby accepts the funding for the sole purposes listed in its said funding request and agrees that the funds provided by the City shall be used for those purposes, and no other. II. PAYMENTS. The City will provide the Grantee with funding on a reimbursement basis, which is contingent upon the event or service being held or provided as outlined in the grant application. Payment will be processed after the conclusion of the event or service, and upon the Grantee submitting all required documentation and receipts as outlined in the award letter and grant guidelines. The request for reimbursement and all supporting documentation must be provided by the Grantee to the City prior to the end of the calendar year. The total payment by City to Grantee will not exceed the awarded grant amount. III. LIMITATION ON THE USE OF GRANT FUNDS. Grant funds may be expended only for project purposes and activities as set forth in the grant application or as subsequently modified. A grantee’s request for any modification must be made in writing and approved by City before any expenditures differing from the original grant award are paid from funds provided by City. IV. REPORTS AND RECORDS RETENTION. The grantee shall submit to the City, before the end of the calendar year, and prior to a disbursement of funds from the City to the Grantee, a grant report and a copy of all receipts for expenses to be paid from City funds. Failure to file the report and final receipts in a timely manner will preclude the Grantee from receiving awarded funding and applying for City grants and programs in the future. Financial records must be kept for inspection and/or audit for a period of two years following the submission of said receipts. Financial records include receipts documenting actual expenditures, payroll statements, vouchers, invoices and bills, covering all receipts and expenditures of grant funds. The Grantee recognizes the right of City or its designee to make a full audit of Grantee’s records relating to this grant. IN WITNESS WHEREOF, the parties hereto have set their hands as of this _______ day of ___________________, 20____, CITY OF GALESBURG, an Illinois ______________________________ municipal corporation, Grantee (Print name of organization) By: __________________________ By:___________________________ Mayor Signature of representative Attest: _______________________ _______________________________ City Clerk Print name & title TOWN OF THE CITY OF GALESBURG Date: July 19, 2021 Agenda Number: 21-9016 TOWN FUND $5,026.46 GENERAL ASSISTANCE FUND $3,230.06 IMRF FUND $2,375.52 SOCIAL SECURITY/MEDICARE FUND LIABILITY FUND AUDIT FUND TOTAL $10,632.04